History, 23.05.2021 19:10 zeesharpe05
A firm’s demand curve in period 1 is Q=25 - P. Fixed costs are 20 and marginal costs per
unit are 5.
a. Derive equations for total revenue and marginal revenue.
b. At what output will marginal revenue be zero?
c. At what price will total revenue be maximized?
d. At what price and output will profit be maximized?
e. Calculate the maximum profits the firm makes​
Answers: 2
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A firm’s demand curve in period 1 is Q=25 - P. Fixed costs are 20 and marginal costs per
unit are 5...
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