Re: dse 2012

Posted by Granpa Simpson on Jun 12, 2014; 10:36pm
URL: http://discussion-forum.276.s1.nabble.com/dse-2012-tp7592423p7592575.html

23) 6 rs will be the answer because at that price the market will clear. at price 3 firm 2 would produce as p<MC, so there will be 22 units as A has a constraint of producing 5 units. Use the same logic for each option and you will get Rs.6 as the only solution where the market is cleared.