Question #349006

The following are two distinct demand functions: 𝑞1=24−0.2𝑃1 and 𝑞2=10−0.05𝑃2. The average cost AC=40+35/q. What price the firm will change without discrimination?


1
Expert's answer
2022-06-07T17:34:15-0400

q1=240.2p,q_1=24-0.2p,

q2=100.05p,q_2=10-0.05p,

q1=q2,q_1=q_2,

240.2p=100.05p,24-0.2p=10-0.05p,

14=0.15p,14=0.15p,

p=93.3,p=93.3,

q1=q2=5.3.q_1=q_2=5.3.


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