Re: ISI ME II 2014

Posted by Ridhika on May 10, 2014; 4:23pm
URL: http://discussion-forum.276.s1.nabble.com/ISI-ME-II-2014-tp7587168p7589309.html

Yup .. you are correct arushi .. I forgot to divide by 2 in the end ! 

----- Reply message -----
From: "Arushi [via Discussion forum]" <ml-node+[hidden email]>
To: "Ridhika" <[hidden email]>
Subject: ISI ME II 2014
Date: Sat, May 10, 2014 7:49 PM

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

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