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28 Sep 2019
The inverse demand for a firm's product is P = 400 - Q - 4Q2. The firm's cost of production is
C(Q) = 16Q - Q2 + 4Q3. The firm's problem is to find the profit-maximizing point on its demand curve.
a. Calculate the firm's marginal revenue function.
b. Calculate the firm's optimal price and output.
c. Calculate the profit using the equilibrium Q.
The inverse demand for a firm's product is P = 400 - Q - 4Q2. The firm's cost of production is
C(Q) = 16Q - Q2 + 4Q3. The firm's problem is to find the profit-maximizing point on its demand curve.
a. Calculate the firm's marginal revenue function.
b. Calculate the firm's optimal price and output.
c. Calculate the profit using the equilibrium Q.
Anne Gillian DueroLv10
28 Sep 2019
