DSE 2011 Q

[Khagesh]

I have doubt on how to solve

Q 10, 11 , 12!!!

Any one plz xplain....

[Chinni18]

10
Set MC=P
=> 2q=(100-10q)/15  [Becz we have 10 firms, so dd=ss means 10q=100-15p]
=> q=2.5
Total ss, Q=2.5*10=25
And thus p=5

[Chinni18]

11
Initially 100-p=20+3p
=>p=20 and q=80
Later, 20+3(p-10)=100-p
=>p=110/4
change is 7.5

[Khagesh]

thnx :)

plz if u can xplain remaining too

[Chinni18]

MC=20
TR=60q - 2q^2
MR=60-4q
Equate MC and MR to get q=10
Sub this in dd fn and get p=40

[Khagesh]

thnx a lot !! :D srsly

[Chinni18]

Welcome

[s]

10.
find out supply curve of an individual firm,that will be the portion of MC function above minimum AC ie p=2q.
or q=p/2 now market supply is 10*q=5p

equate market ss and market dd.

11. find out before sales tax what is p and q..aftr sales tax Pc ie price facing consumers > Ps price facing producers Pc=Ps+10 ...now substitute it in either q=100-Pc or q=20+3Ps and solve for Pc
and find Pc-P(before sales tax)

12. monopolist produces when MR=MC. TR=pq and MC is 20 ..now solve for p