Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder

تمرين 31

Suppose that a firm faces a demand curve that has a constant elasticity of -2. This demand curve is given by
q = 256/P 2
Suppose also that the firm has a marginal cost curve of the form
MC = 0.001 q
a. Graph these demand and marginal cost curves.
b. Calculate the marginal revenue curve associated with the demand curve; graph this curve. (Hint: Use Equation for this part of the problem.)
c. At what output level does marginal revenue equal marginal cost?