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The Demand for a Firm's Product Is Given by the Equation

Question 29

Essay

The demand for a firm's product is given by the equation: P = 36 - 0.2Q.The firm's cost equation is given by C = 200 + 20Q.
(a)Determine the firm's optimal quantity and price.

Correct Answer:

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With the new cost function,MC = $24.Sett...

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