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Your marketing research department has estimated the demand for your rm's product to be: Q=10,000-100P and the marginal revenue to be: MR = 100 -
Your marketing research department has estimated the demand for your rm's product to be: Q=10,000-100P and the marginal revenue to be: MR = 100 - 0.020. Suppose marginal cost and average total cost are constant at $60. The quantity you should produce is El units. The price you should charge is $El. The amount of economic prot earned by your rm would be 35D. The adjacent gure shows the demand curve (D), the marginal revenue curve (MR), the marginal cost curve (MC) and the average total cost curve (ATC) of the rm. Using the rectangle drawing tool, highlight the region depicting the economic prot of the rm. Carefully follow the instructions above and only draw the required objects. Price (dollars per unit) Profit-maximization of your rm 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Quantity (units)
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