A firm practices first-degree price discrimination

Economics Jan 22, 2021

A firm practices first-degree price discrimination. The demand for the firm's product is defined as QD = 20 - 2P. If the firm has a constant marginal cost of production equal to $7 and the product is infinitely divisible, how much output should it produce to maximize profit?

a) 3

b) 5

c) 6

d) None of the above is correct.

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