Consider the following model of a firm. The firm can sell any number of units at the constant price, p. The marginal cost of production is given by MC=c+dq. How many units of the good will a profit-maximising firm produce? a. (p-c)/d b. d(p-c) c. pq - cq d. q(p-c)
Consider the following model of a firm. The firm can sell any number of units at the constant price, p. The marginal cost of production is given by MC=c+dq. How many units of the good will a profit-maximising firm produce? a. (p-c)/d b. d(p-c) c. pq - cq d. q(p-c)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider the following model of a firm. The firm can sell any number of units at the constant price, p. The marginal cost of production is given by MC=c+dq. How many units of the good will a profit-maximising firm produce?
a. (p-c)/d
b. d(p-c)
c. pq - cq
d. q(p-c)
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