Math Problem Statement

Solution

Ask a new question for Free

By Image

Drop file here or Click Here to upload

Math Problem Analysis

Mathematical Concepts

Price Elasticity of Supply
Price Elasticity of Demand
Marginal Cost Function
Differentiation
Perfect Competition

Formulas

Price Elasticity of Supply (PES) = (∂q/∂P) × (P/q)
Price Elasticity of Demand (PED) = (∂q/∂P) × (P/q)
Marginal Cost Function: MC(q) = 14q

Theorems

In perfect competition, Price = Marginal Cost
Price elasticity of demand for a fixed expenditure is -1

Suitable Grade Level

Undergraduate Economics