Re: ISI ME II 2014

Posted by Arushi on May 10, 2014; 2:19pm
URL: http://discussion-forum.276.s1.nabble.com/ISI-ME-II-2014-tp7587168p7589298.html

In part 1 b, If u take quantity exported to be equal to 0, and then max the profit of the domestic mkt function. Then shouldn't u get Q=2.
P=10-q.
TR=10q-q^2
MR= 10-2q
MC= 6
then MR=MC gives q=2 right? not 4
Thus quantity exported is 0 and quantity sold in domestic market is 2