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(c) (d) Now assume that widgets have suddenly become very popular, so there is an increase in the demand for widgets and the price has
(c) (d) Now assume that widgets have suddenly become very popular, so there is an increase in the demand for widgets and the price has increased to p = 120. What is the profit-maximizing level of output for this firm? Be sure to confirm that the identified level of production is a mazimizer rather than a minimizer (i.e., by applying the second derivative test). Suppose the firm is limited in its capacity to produce widgets and can only produce up to 150 widgets per year. Would this change the profit-maximizing level of production and the firm's profit? If so, how
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