Assuming Katrina’s Candies is operating in the monopolistically competitive market structure and faces the following weekly demand and short-run cost functions:

VC = 20Q+0.006665 Q2 with MC=20 + 0.01333Q and FC = $5,000

P = 50-0.01Q and MR = 50-0.02

Where price is in $ and Q is in kilograms.

All answers should be rounded to the nearest whole number. Algebraically, determine what price Katrina’s Candies should charge if the company wants to maximize revenue in the short run. Determine the quantity that would be produced at this price and the maximum revenue possible

Answer rating: 100% (QA)

MC20 001333Q MR 50002Q MCMR 20 001333Q50002Q 50002Q20 001333Q 002Q0... View the full answer