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?

1 Answer

  • Oiy
    Lv 6
    8 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

Still have questions? Get answers by asking now.