What quantity would maximize profits for this firm? (Hint: Recall that profit maximizing is where MR = MC)
5) A monopolistically competitive firm has the following short-run inverse demand, marginal revenue, and cost schedules for a particular product: P = $45 – $0.2Q MR = $45 – $0.4Q TC = $500 + $5Q MC = $5 a) What quantity would maximize profits for this firm? (Hint: Recall that profit maximizing is where MR […]