The manufacture of high-quality flatbed scanners is trying to decide what price to set forits product. The costs of production and the demand for the product are assumed to be as follows:D TC = 500,000 + 0.85Q + 0.015Q and MC = 0.85 + 0.03Q; Q =14,166 - 16.6P2a. Determine the short-run profit maximizing price.
b. Show on a diagram the firm's AC, AVC, MC, P and MR.© BrainMass Inc. brainmass.com October 16, 2018, 5:58 pm ad1c9bdddf
If we assume that the firm is the monopolist in the market, it is a
price setter. Then it will produce at ...
The solution answers the question(s) below.
Short Run Profit Margin
1. Locate and explain how the optimal output maximizes the per unit profit (II).
2. What happens to profit if outputs are below or above the optimal output level?
3. Summarize the short run profit. Use numbers.
Refer to the attached image for more information on the numbers to include in the calculations and how to present the numbers in a table.View Full Posting Details