Essay
A firm's research department has estimated that if other firms in the industry are indifferent to changes in the price of its product, its demand curve will be
P1 = 60 - Q
However, if other firms always charge the same price it does, the firm's demand curve will be
P2 = 80 - 3Q
a. If the firm's marginal cost equals $30,00, what output and price will maximize profit?
b. If the firm's marginal cost equals $8.00, what output and price will maximize profit?
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a. This is an oligopolistic firm faced w...View Answer
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