Question
A monopoly firm is faced with the following demand function P = 26 – 0.5Q. The Marginal Cost function for the firm is given by 6 + 6Q and the total fixed cost is 4.
Determine
a) The profit maximizing output.
b) The level of supernormal profit if any.
c) The output level at the break-even point.
Determine
a) The profit maximizing output.
b) The level of supernormal profit if any.
c) The output level at the break-even point.
Answers
Anonymous
c