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The firm's maximization problem is now max It ( q, T) = T - cq q, T s. t . CS = D ( t
The firm's maximization problem is now max It ( q, T) = T - cq q, T s. t . CS = D ( t ) dt + P(q) x q - T 2 0 P (q ) where P(q) = D-1(q) (i.e. the inverse demand) HW1-Q3 Prove that the optimal price-quantity bundle is q* = D(c) T* = D(t) dt + c . D(c) (2)
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