Assume (for simplicity) that a firm has constant costs of $8. This means that both the...

 

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Assume (for simplicity) that a firm has constant costs of $8. This means that both the average total cost of producing a good is $8 and the marginal cost of producing the good is $8. One firm's demand for this good is given below: Qd (in thousands) O 1 2 3 4 LO P $20 $16 $14 $12 $10 5 $8 6 $6 7 $4 If this firm cannot price discriminate, what is it's profit? Hint: Profit(Q) = (P-ATC)*Q. Careful! Q is in thousands! Assume (for simplicity) that a firm has constant costs of $8. This means that both the average total cost of producing a good is $8 and the marginal cost of producing the good is $8. One firm's demand for this good is given below: Qd (in thousands) O 1 2 3 4 LO P $20 $16 $14 $12 $10 5 $8 6 $6 7 $4 If this firm cannot price discriminate, what is it's profit? Hint: Profit(Q) = (P-ATC)*Q. Careful! Q is in thousands!