Your marketing research department has estimated the demand for your firm's product to be: Q=10,000-100P and the marginal revenue to be: MR = 100 -0.02Q. Suppose marginal cost and average total cost are constant at $40. The quantity you should produce is units. The price you should charge is $ The amount of economic profit earned by your firm would be $ The adjacent figure shows the demand curve (D), the marginal revenue curve (MR), the marginal cost curve (MC) and the average total cost curve (ATC) of the firm.

Your marketing research department has estimated the demand for your firm's product to be: Q=10,000-100P and the marginal revenue to be: MR = 100 -0.02Q. Suppose marginal cost and average total cost are constant at $40. The quantity you should produce is units. The price you should charge is $ The amount of economic profit earned by your firm would be $ The adjacent figure shows the demand curve (D), the marginal revenue curve (MR), the marginal cost curve (MC) and the average total cost curve (ATC) of the firm.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Economics
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