Answer to Question #128146 in Economics for Vanessa

Question

Q_d=1500-25P

And Marginal revenue curve by

MR= 20-Q/25

Calculate the perfectly competitive and monopoly outputs and prices                       

Answer 1

The perfectly competitive outputs and prices is:

$$MR=p$$

$$p=60-\frac {Q}{25}$$

$$60-\frac {Q}{25}=20-\frac {Q}{25}$$

This enterprise cannot operate in perfect competition under the given conditions.

In the case of a monopoly:

$$TR=pQ$$

$$TR=60Q- \frac {Q^2}{25}$$

$$TR=\int MR$$

$$TR=20Q-\frac {Q^2}{25}$$

$$Q=2000$$

In the received conditions, the price will be negative.

It is recommended to clarify the condition of the MR function.