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#### Consider a firm that faces a constant demand function, P = k, where k is a constant

###### Economics

Consider a firm that faces a constant demand function, P = k, where k is a constant. Hence the firm charges the same price no matter the quantity sold. Its goal is to maximize profit. The maximum profit the firm can earn is 260. Its cost function is TC = 64 +Q2 (a) Solve for the value of k, the constant price charged by the firm. (b) Solve for the quantity, Q, that maximizes profit. Show that it is a maximum. (c) Find the value(s) of Q at which the firm breaks even. (d) Draw a graph depicting both TC and TR. Label, with numbers, all the intercepts and the point(s) where the two curves cross. (0) Verify your answer to part (b) by setting MR = MC. Verify that you've found a maximum. (f) Draw a graph with both MR and MC. Label the point(s) where they cross.

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