# Industrial ORGANIZATION

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### Question Description

4 problem sets , each set have some questions 4 problem sets , each set have some questions 4 problem sets , each set have some questions

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DoctorDickens
School: University of Virginia

Attached.

Industrial organization
Name of the student:
Name of professor:
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1

INDUSTRIAL ORGANIZATION
Question one
a. Profit function
Profit function is given by P= R-C
R= revenue
C= cost
Inverse demand function is:
p(q) = 64 − 4q
Revenue (R = p× q
Therefore, Revenue function can be expressed as:
R= (64-4q)q
R= 64q-4q2
So profit will be;
P= 64q-4q2-0 (marginal cost is zero)
P= 64q-4q2

b. The first order condition corresponding to my profit maximizing problem is that:
Maximum profit= total revenue –total cost
Maximum profit= 64q-4q2.
At first order condition
R’(q)-C’(q)=0

2

INDUSTRIAL ORGANIZATION

3

This implies that the marginal revenue is e...

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Anonymous
awesome work thanks

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