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Monopoly and Monopolistic Competition

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Chapter 11 Problems (1, 3, 5, 9, 11, 13)<br />

TC = 500 + 3Q + 9Q 2<br />

where Q is the number of units of output (where each unit<br />

contains one unit of good X <strong>and</strong> two units of good Y) <strong>and</strong> TC<br />

is total cost (in dollars). The dem<strong>and</strong> curves for the firm's two<br />

products are<br />

P = 400 − Q<br />

P = 300 − 3Q<br />

X X<br />

Y Y<br />

where P X <strong>and</strong> Q X are the price <strong>and</strong> output of product X <strong>and</strong> P Y<br />

<strong>and</strong> Q Y are the price <strong>and</strong> output of product Y.<br />

<strong>Monopoly</strong> <strong>and</strong> <strong>Monopolistic</strong> <strong>Competition</strong> Page 30

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