Finding out the equilibrium price also quantity from the given demand also total cost equation.
1. "If every employer hired its best qualified applicants for a job at every opportunity, the phenomenon of black poverty (as distinct from poverty) could be wiped out in ten yrs." Do you agree/disagree? Comment.
2. You are given the following demand function for the industry:
Q = 20 - p. Its total cost function is TC = Q2 + 8Q + 2. Find
(a) profit-maximizing output
(b) equilibrium price
(c) elasticity of demand at the equilibrium price
Is this industry a price-taker or price-searcher? Elucidate why?