Reference no: EM131623714

Question: In Table below, an oligopolistic firm faces two demand schedules. The current price is given as $185.

Study the table and answer the following questions:

(i) What would the demand curve be under the kinked demand curve hypothesis? Explain.

(ii) Plot the marginal revenue curve corresponding to the kinked demand curve and explain.

(iii) Given that Marginal Cost is $150 at every level of output, copy the table and calculate Marginal Revenue. Determine the profit- maximizing level of output and plot it on the graph.

Competitors quantity demands	Price	Competitors follow: quantity demands	Total Revenue Column 1x2	Marginal Revenue (MR)	Marginal Cost (MC)
20	200	35	4000		150
30	195	40	5850		150
40	190	45	7600		150
50	185	50	9250		150
60	180	55	10800		150
70	175	60	12250		150