Question
A firm faces a demand curve given by q = 100-2P, Marginal and average costs are constant at $10 per unita)What output level should the
A firm faces a demand curve given by q = 100-2P, Marginal and average costs are constant at $10 per unita)What output level should the firm produce to maximize profit? what price should it sell at ? (Q* , P*) and what are the profits at this output levelb)What output level should the firm produce to maximize revenue(TR*) and what are the profit/losses at this revenue maximizing output levelc)Suppose the firm wishes to maximize revenues subject to the constraint that it earns Ksh.12 in profits for each of the 64 machines it employs, what level of output should it produce
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