Asked by Jim

Q = 39,000 – 500P
AVC = 30 + 0.005Q
Q is quantity demanded and produced, and P is price of the product. Total fixed cost is $50,000. Assume these functions are based on monthly demand and production.
A. What are the inverse demand and the MR revenue equations?

B. What is the profit maximizing output of this firm?

C.What is the price at the profit maximizing output?

d. What is the firm’s total profit?

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