Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Consider a firm that faces a constant demand function, P = k, where k is a constant

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.

Option 1

Low Cost Option
Download this past answer in few clicks

2.89 USD

PURCHASE SOLUTION

Already member?


Option 2

Custom new solution created by our subject matter experts

GET A QUOTE

Related Questions