Suppose a firm facing inverse demand curve p = 10 2q has a cost function given
Question:
Suppose a firm facing inverse demand curve p = 10
– 2q has a cost function given by c = 5
+ q.
(a) Determine the firm’s revenue (r) function.
(b) Determine the firm’s profit-maximizing output level.
(c) Determine the price the firm will choose to set.
(d) Calculate the firm’s cost, revenue, and profit at the profit-maximizing output level.
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Related Book For
Managerial Economics A Strategic Approach
ISBN: 285451
2nd Edition
Authors: Robert Waschik ,Tim Fisher ,David Prentice
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