Answer in Microeconomics for Ansh #111389
April 21st, 2023
Solution:
We find the price of the goods on the market as the mathematical expectation of a random variable described in the condition of the problem.
“M(p) =displaystylesum_{i=1}^n price_i probability_i”
So, price will be
“P=8times frac{1}{2}+2times frac{1}{2}=5”
“MC=P”
“MC=C^/(q)=2q”
“2q=5”
“q=2.5”
“pi=15+(TR-TC)”
“pi=15+5q-10-q^2”
“pi=5+5q-q^2”
“pi=5+5times2.5-2.5^2=17.5-6.25=11.25”
Answer: q=2.5, “pi” =11.25
