Information for questions 23-25 Consider a monopolistic comp…

Questions

Infоrmаtiоn fоr questions 23-25 Consider а monopolistic competitive mаrket of a differentiated good, with identical firms. The demand for a single firm is given by p=900-1.5q (where p is the price, and q is the quantity). Note that this is linear demand, that is, p is a straight-line function of q. The total cost for each firm to produce quantity q is Cost=100+30q. That is, the firm has a fixed cost of 100 and a (constant) marginal cost of 30. Total market sales of this good are 21,840 units. For this group, only the exact answer is accepted, so double check your calculations.   Suppose the answer to question 23 was 455 (this is not the correct answer). That is, each firm produces and sells 455 units. How many varieties of the differentiated good will be sold in this market?

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