PQ7.2(a) Case: Average Revenue Demand Curve (AR): P=120 -0.02Q Weekly Production (Q) Price (P) (Cents/Unit) Cost Function (C) = 60Q +25,000 Marginal Cost (MC) = Slope of Total Cost (TC) Curve = 60 Assume: Maximum Profit. Question: What is the Level of Production, Price, and Total Profit per week - assuming Maximum Profit?

PQ7.2(a) Case: Average Revenue Demand Curve (AR): P=120 -0.02Q Weekly Production (Q) Price (P) (Cents/Unit) Cost Function (C) = 60Q +25,000 Marginal Cost (MC) = Slope of Total Cost (TC) Curve = 60 Assume: Maximum Profit. Question: What is the Level of Production, Price, and Total Profit per week - assuming Maximum Profit?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

100%

**Case:**

Average Revenue Demand Curve (AR):
\[ P = 120 - 0.02Q \]

- **Weekly Production (Q)**
- **Price (P)** (Cents/Unit)
- **Cost Function (C)** = $ 60Q + 25,000 $
- **Marginal Cost (MC)** = Slope of Total Cost (TC) Curve = 60

**Assume:**

Maximum Profit.

**Question:**

What is the **Level of Production, Price, and Total Profit** per week—assuming Maximum Profit?

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