Question

Consider the problem of a firm that needs to decide how much output, denoted by x, to sell.

The marginal revenue function of the firm is given by 10−x. It's marginal cost function is goven by x.

In addition, the firm faces a legal constrain: it is allowed to sell a minimum of 0 units, and a maximum of 5 units.

QUESTION. What would be the impact on the profits of the firm of a change in the law that allows it to sell up to a maximum of 6 units?

Please help me to answer this que...