A firm faces the following average revenue (demand) curve: P= 130 - 0.02Q where Q is weekly production and P is price, measured in cents per unit. The firm's cost function is given by C = 60Q + 20,000. Assume that the firm maximizes profits. a. What is the level of production, price, and total profit per week? (Round all responses to two decimal places.) The equilibrium quantity is units, the price is cents, and the total profit is $ per week.

A firm faces the following average revenue (demand) curve: P= 130 - 0.02Q where Q is weekly production and P is price, measured in cents per unit. The firm's cost function is given by C = 60Q + 20,000. Assume that the firm maximizes profits. a. What is the level of production, price, and total profit per week? (Round all responses to two decimal places.) The equilibrium quantity is units, the price is cents, and the total profit is $ per week.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter12: Firms In Perfectly Competitive Markets

Section: Chapter Questions

Problem 9P

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