Questions 1-3 below rely on the following assumptions: P = 50 - .25Q MR = 50 - .5Q MC = 8 = Average Cost Suppose the firm decides to charge $40 per unit for the first 10 units and $25 per unit for all units beyond that. How many total units will the firm sell? What is the total profit?
Questions 1-3 below rely on the following assumptions: P = 50 - .25Q MR = 50 - .5Q MC = 8 = Average Cost Suppose the firm decides to charge $40 per unit for the first 10 units and $25 per unit for all units beyond that. How many total units will the firm sell? What is the total profit?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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4

Transcribed Image Text:Questions 1-3 below rely on the following assumptions:
P = 50 - .25Q
MR = 50 - .5Q
%3D
MC = 8 = Average Cost
Suppose the firm decides to charge $40 per unit for the first 10 units and
$25 per unit for all units beyond that.
How many total units will the firm sell?
What is the total profit?
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