The inverse demand for a product is given by P = 400 – 5Q, where Qmeasures the number of units and Pis the price per unit. Suppose that total cost is TC= 100Q+ 2.5Q2with marginal cost per unit of MC= $100 + 5Q. Technological innovation reduces total cost to TC= 25Q+ 2.5Q2 and marginal cost per unit to MC= $25 + 5Q. Identify equilibrium price and quantity before and after the cost reduction. How does profit change?
https://assignmentgeeks.org/wp-content/uploads/2020/04/logo-300x60.png 0 0 Paul https://assignmentgeeks.org/wp-content/uploads/2020/04/logo-300x60.png Paul2021-09-15 06:27:552021-09-15 06:27:55the inverse demand given by p 400 5q