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April 18th, 2011, 04:57 PM   #1
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Competitive fringe Economics Calculus question Please Help?

Could someone please help me solve an Economics Calculus problem

Given

Total Cost of fringe

TC= 50 + 10q + 3q^2
MC = 10 + 6q

Total Cost of Dominant firm

TC = 12,000 + 3q + 5q^2
MC = 3 + 10Q

P = 5000 - Q

Find Quantity for fringe
Find Quantity for dominant firm

Find Profit for fringe
Find profit for dominant firm


Here is an example problem

A monopolist has a demand curve given by P(Q)=100-Q and a total cost curve given by C(Q)=16+Q^2 where P:Price?
Q:Quantity, C:total cost
1) Find the monopolist's profit maximizing quantity and price. How much economic profit does the monopolist earn

Answer

p=100-Q
c=16+Q^2
mc=2Q
mr=100-2Q
mc=mr
2Q=100-2Q
Q=25
P=100-(25)
P=75

Profit = P*Q - (TC)
Profit = 75*25 - (641)
Profit = 1234

Your help will be much appreciated.
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