Question 193.33 ptsA firm faces the following demand function for its product: Q = 25 - 2P1 + 0.5P2. If this firmhas marginal costs equal to 3; what price should this firm set?Round your answer to two decimal places.

P1 is the product of the firm; P2 is exogenous as it is not firm's product, hence taken as a…

Answered: Question 19 3.33 pts A firm faces the…

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 19 3.33 pts A firm faces the following demand function for its product: Q = 25 - 2P1 + 0.5P2. If this firm has marginal costs equal to 3; what price should this firm set? Round your answer to two decimal places.