A Firm in an Oligopolistic Industry Has the Following Demand

question 35

Essay

A firm in an oligopolistic industry has the following demand and total cost equations:
P = 600 - 20Q and TC = 700 + 160Q + 15Q2
Calculate:
a.quantity at which profit is maximized
b.maximum profit
c.quantity at which revenue is maximized
d.maximum revenue
e.maximum quantity at which profit will be at least $580
f.maximum revenue at which profit will be at least $580

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Definitions:

Neglected-firm Effect

A phenomenon where lesser-known, smaller companies may outperform larger companies because they receive less attention from analysts.

January Effect

A seasonal increase in stock market prices that typically occurs during the month of January, often attributed to the buying of stocks that were sold at the end of the previous year for tax purposes.

P/E Effect

The P/E effect is a market anomaly observed where stocks with lower Price-to-Earnings (P/E) ratios tend to outperform those with higher P/E ratios over time.

Strong-form Efficiency

A market hypothesis suggesting that prices fully reflect all available information, both public and private, making it impossible for investors to consistently achieve higher returns.