Answer: See explanation
Explanation:
From the question,
Qd = 100 – 2P
We have to use the subject of the formula to get the expression for Price(P). This will be
2P = 100 - Qd
P= (100 - Qd) /2
P = 50 - 0.5Q
Also, C(Q) = 10Q
MC = 10
Since P = MC
50 - 0.5Q = 10
Collect like terms.
50 - 10 = 0.5Q
0.5Q = 40
Q = 40/0.5
Q = 80
Recall that,
P = 50 - 0.5Q
= 50 - 0.5(80)
= 50 - 40
= 10
The profit will be calculated as:
= TR - TC
where,
Total revenue = Price × Quantity
= 80 × 10 = 800
Total cost = 10Q = 10 × 80 = 800
Profit = 800 - 800 = 0
