Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
9th Edition
ISBN: 9781259290619
Author: Michael Baye, Jeff Prince
Publisher: McGraw-Hill Education
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Chapter 14, Problem 2CACQ

(a)

To determine

To find: The price that the firm charge to maximize its profit and the level of consumer surplus at this price.

(b)

To determine

To find: The firm’s marginal revenue if it produces 7 units, the output that the firm will produce in the short run to maximize its profit and in long run output that firm willproduced if the price remains regulated at $80.

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Only #4 please, Use a graph please if needed to help prove
a-c
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