You are given the market demand function Q = 3400 - 1000p, and that each duopoly firm's marginal cost is $0.28 per unit, which i
mplies the cost function: C (q_i) = 0.28q_i, assuming no fixed costs for i = 1, 2. The Cournot equilibrium quantities are q_1 = and q_2 = (enter your responses as whole numbers). The Cournot equilibrium price is $ (round to the nearest penny) Calculate the Cournot profits: firm 1 $ and firm 2 $ (round both responses to the nearest cent).
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Answer:
The cost per month is increasing at a rate $365.
Explanation:
Differentiation Formula
[ where a is a constant]
Given that,
A manufacturer of handcrafted wine racks has determined that the cost to produce x units per month is given by
.
Again given that,
the rate of changing production is 13 unit per month
i.e
To find the cost per month, we need to find out the value when production is changing at the rate 13 units per month and the production is 70 units.
Differentiating with respect to t
Plugging
[ plugging x=70]
=364
[ The unit of c is not given. Assume that the unit of c is dollar.]
The cost per month is increasing at a rate $365.