Question
A firm sells its product in two different markets. The inverse demand in market A is P A = 72 - 5Q A and in
A firm sells its product in two different markets. The inverse demand in market A is PA= 72 - 5QAand in market B, it is PB= 60 - 3QB. It has fixed costs of 72. Each unit it produces costs 12, i.e., marginal cost equals 12. To maximize profits, what quantities of output will be sold in each market and what will total profits be?
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To maximize profits the firm should produce where marginal cost equals marginal revenue in each mark...
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Microeconomics
Authors: Christopher T.S. Ragan, Richard G Lipsey
14th canadian Edition
321866347, 978-0321866349
