Question:
In a market, two firms F1 and F2 are producing homogenous products. The inverse demand function is given by p=120-0.5(q1+q2), where p is the unit price of the product, and q1 and q2 are the outputs from F1 and F2, respectively. Suppose the cost functions of F1 and F2 are C1 = 20q1 and C2 = 10 +0.5q22, respectively. Then the total profit earned by both the firms assuming a competitive situation is (in integer).
In a market, two firms F1 and F2 are producing homogenous products. The inverse demand function is given by p=120-0.5(q1+q2), where p is the unit price of the product, and q1 and q2 are the outputs from F1 and F2, respectively. Suppose the cost functions of F1 and F2 are C1 = 20q1 and C2 = 10 +0.5q22, respectively. Then the total profit earned by both the firms assuming a competitive situation is (in integer).
Updated On: Oct 1, 2024
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Correct Answer: 190
Solution and Explanation
The correct answer is: 190 to 190 OR 4790 to 4790 (approx.)
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