The difference between the Market curves and the aggregate demand and supply curve. Concept Introduction: Demand : The quantity demanded is the amount of a product which people are willing to buy at a given price at a given time. Supply : The quantity supplied is the amount of a product which producers are willing to sell at a given price at a given time.

Question

1. A firm has the following demand function: P = 60 – 0.5Q and its total cost is defined by TC= 13+ Qa. Find the maximum revenue b. Find the production to optimize the profit. c. Verify if the marginal revenue and marginal cost are the same at the profit-maximizing productionlevel. Exercise 6From the point of view of the firm, what decision criteria have been found relevant in the analysis ofproduction and profit? Provide two refernces with your answer.

Answer 1

Question

Chapter 5, Problem 3P

To determine

The difference between the Market curves and the aggregate demand and supply curve.

Concept Introduction:

Demand: The quantity demanded is the amount of a product which people are willing to buy at a given price at a given time.

Supply: The quantity supplied is the amount of a product which producers are willing to sell at a given price at a given time.

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1. A firm has the following demand function: P = 60 – 0.5Q and its total cost is defined by TC= 13+ Qa. Find the maximum revenue b. Find the production to optimize the profit. c. Verify if the marginal revenue and marginal cost are the same at the profit-maximizing productionlevel. Exercise 6From the point of view of the firm, what decision criteria have been found relevant in the analysis ofproduction and profit? Provide two refernces with your answer.

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