MC = dC/dQF = 2QF + 2
For equilibrium in market,
Demand = supply
60-2P = 5P-10
P = 70/7 = $10
Q = 60-2*10 = 40 units
So
Equilibrium price = $10
Equilibrium quantity = 40 units
Total revenue = 10*40 = $400
Total cost = 16 + 2*40 + 40^2
Total cost = $1696
Total profit = 400-1696
Total profit = -$1296
A perfectly competitive market is described by the demand curve QD= 60 – 2P, and the supply curve QS = 5P – 10. A typic...
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