Marginal Costs (MC) = 32q
Market 1 Inverse demand fxn: P=100 – qA
Total Revenue (TR) = P*Q
TR = (100–Q)×Q
TR = 100Q–Q2
MR = ΔTR/ΔQ=(100Q–Q2)/ΔQ
MR = 100 – 2Q
Market 2 Inverse demand fxn: p=160−2qB
Total Revenue (TR) = P×Q
TR = (160–2Q)×Q
TR = 160Q–2Q2
MR = ΔTR/ΔQ=(160Q–2Q2)/ΔQ
MR = 160 – 4Q
Equilibrium
MR = MC
Market 1: 100–2Q=32Q
38Q=100
Q = 100×83
Q1=37.5
P = 100 – Q
P = 100 – 21.43
P = 78.57
TR = 100Q–Q2
TR = 100(37.5)–37.52
TR = 160(37.5)–2(37.52)
TR = 2,343.75
Market 2: 160 – 4Q = 2/3Q
14/3Q = 100
Q = 100×143
Q2=21.43
P = 160 – 2Q
P = 160–2×21.43
P = 160 – 42.86
P = 117.14
TR = 160Q–2Q2
TR = 160(21.43)–2(21.432)
TR = 3,428.8 – 918.4898
TR = 2,510.31
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