A firm is faced with the demand function p= 18 - 2g. Its foed cost is known to be 20 and its unit variable cost is 4. Estimate the interval within which the firm achieves a positive profit. What is the profit madmizing output for the firm? Use a second-order condition.

A firm is faced with the demand function p= 18 - 2g. Its foed cost is known to be 20 and its unit variable cost is 4. Estimate the interval within which the firm achieves a positive profit. What is the profit madmizing output for the firm? Use a second-order condition.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A firm is faced with the demand function p = 18 – 2g. Its fixed cost is knowm to be 20 and its unit variable cost is 4. Estimate the interval within which the firm achieves a
positive profit. What is the profit maximizing output for the firm? Use a second-order condition.

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