Question: firm produces apples and its cost function is c(y) = 5. A profit-maximizing The price of one apple is denoted by Pa 1. Write

firm produces apples and its cost function is c(y) = 5. A

firm produces apples and its cost function is c(y) = 5. A profit-maximizing The price of one apple is denoted by Pa 1. Write down the profit maximization problem. Determine the optimal production level v* (Pa). P 2. Suppose now that the demand is determined by the formula z" (p.) ME 100 Plot the inverse demand and supply curves together. Determine the equilibrium price and quantity.

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