Answer to Question #118596 in Economics for rahul

Question

Assume that two identical firms in a purely oligopolistic industry selling a homogenous product agree to share the maket equally. The total market demand function for the commodity is Qd = 240 – 10P. The cost schedules of the firms are given in the following table: q1 40 50 60 80 q2 50 70 100 SMC1 (Rs.) 8 10 12 16 SMC1 (Rs.) 4 6 9 SAC1 (Rs.) 13 12.3 12 13 SAC1 (Rs.) 7 6 7
Q1.- When q2 = 100, then MR2 will be
Select one:
a. 16
b. 32
c. -32
d. -16
Q.2 When q2 = 50, price at this level of output will be
Select one:
a. 12
b. 14
c. 24
d. 32
Q3 When q2 = 50, then MR2 will be
Select one:
a. 2
b. 4
c. 5
d. 6
Q4When q2 = 70, then MR2 will be
a. 4
b. -9
c. -4
d. -5

Answer 1

Q1.- When q2 = 100, then MR2 will be

d. -16.

Q.2 When q2 = 50, price at this level of output will be

b. 14.

Q3 When q2 = 50, then MR2 will be

b. 4.

Q4 When q2 = 70, then MR2 will be

c. -4.