The market demand curve for a product is given below: QD = 250 – 0.5 P (i) Assume that the market is supplied by a monopolist with a constant unit…

The market demand curve for a product is given below:

QD = 250 – 0.5P

(i)

Assume that the market is supplied by a monopolist with a constant unit cost equal to $100. Calculate the equilibrium price and quantity.

(ii)

Now assume that the market is supplied by perfectly competitive firms and that the market supply curve is perfectly elastic at a price equal to $100. Calculate the equilibrium price and quantity.

I. Demand curve=250-0.5P 0.5p=250-qp=500-2qSupply curve P=100qAt equilibrium demand =supply100q=500-2q102q=500q=4.9p=490.2 2. Demand curve=250-0.5P0.5p=250-qp=500-2qSupply curve P=100qAt…

Join the Conversation

5 Comments

  1. 741754 702757Chaga mushroom tea leaf is thought-about any adverse health elixir at Spain, Siberia and lots of n . Countries in europe sadly contains before you go ahead significantly avoidable the main limelight under western culture. Mushroom 185583

  2. 474490 574203Hi. Thank you for creating this internet site . I m working on betting online niche and have identified this website using search on bing . Will likely be sure to look much more of your content material . Gracias , see ya. :S 202475

  3. 550845 842048Ive applied the valuable points from this page and I can certainly tell that it gives lots of assistance with my present jobs. I would be really pleased to maintain finding back in this internet page. Thank you. 922416

  4. 644871 78969Hello! I could have sworn Ive been to this weblog before but after browsing by way of some of the post I realized its new to me. Anyways, Im surely happy I located it and Ill be book-marking and checking back often! 238447

Leave a comment

Your email address will not be published.