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?

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  • Oiy
    Lv 5
    2 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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