Answered: Consider a company with the following…

Consider a company with the following price P and cost function C: P = 500 - 0.2y; C y-28y + 48000. Determine the optimal price P, output y and profit n*. %3D

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter10: The Firm And The Industry Under Perfect Competition

Section: Chapter Questions

Problem 4TY

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Consider a company with the following price P and cost function C: P = 500 –
0.2y; C = y? - 28y + 48000. Determine the optimal price P", output y and
profit a*.

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