Question: be P = 6 0 0 - 3 Q , where P denotes price in dollars and Q denotes total unit sales. The firm's cost
be where denotes price in dollars and denotes total unit sales. The firm's cost equation is
a Derive the equations for marginal revenue and marginal cost.
points
b Determine the dollar values for Marginal Revenue MR and Marginal Cost MC if the firm is currently producing at an output level Q of units.
points
c Provide a recommendation to this firm if they should increase, decrease, or keep the quantity at to maximize its profit you must motivate your answer
point
d How should this firm change increase decrease, or keep the same its profit maximizing quantity compared to your finding in part if the firm's fixed cost changes from to so you must motivate your answer
point
e How should this firm change increase decrease, or keep the its profit maximizing quantity compared to your finding in part if the firm's variable cost changes so
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
