assume the demand curve becomes steeper and is given by q = 45 - 0.5p. what is the firm's profit maximizing price and quantity. MC = $10?
- OiyLv 52 months ago
Q=45-0.5p or p=90-2q. So MR=90-4q
MC=MR, 90-4q=10, The firm will maximize profit if q=80/4=20 and p=50
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