Ritu posted an Question
June 02, 2020 • 02:52 am 30 points
  • UGC NET
  • Economics

Question given the following total cost and demand functions of a firm, find the price at which profits would be maximized: c = 50 +200+ 10 p 100-30 where c=tot

Question Given the following total cost and demand functions of a firm, find the price at which profits would be maximized: C = 50 +200+ 10 P 100-30 Where C=Total Cost Q=Output P Price Choices

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    Nidhi taparia Best Answer

    Since it is not explicitly mentioned, we cannot assume perfect competition. As per the standard operating procedure, we will derive MR from AR through TR, and MC from TC. Please refer to the image for exact calculation. Answers - Q = 5 P = 85

    cropped3164490591590596075.jpg
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