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MC Qu. 64 A firm with market power faces... A firm with market power faces the following estimated demand and average va
Posted: Sun Jul 03, 2022 1:01 pm
by answerhappygod
- Mc Qu 64 A Firm With Market Power Faces A Firm With Market Power Faces The Following Estimated Demand And Average Va 1 (33.39 KiB) Viewed 10 times
MC Qu. 64 A firm with market power faces... A firm with market power faces the following estimated demand and average variable cost functions: Qd=39,000 - 500P +0.4M - 8,000PR AVC= 30 -0.005Q+ 0.0000005Q² where Qd is quantity demanded, Pis price, Mis income, and PR is the price of a related good. The firm expects income to be $40,000 and PR to be $2. Total fixed cost is $100,000. What is the profit-maximizing choice of output?
8,000 units 10,000 units 12,000 units 16,000 units O units, the firm shuts down