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your firm is operating in a market for which it sells according to the demand: q

ID: 1210177 • Letter: Y

Question

your firm is operating in a market for which it sells according to the demand:

q=1200-5p for 0 q 200 , where q is quantity demanded and p is price

q= 400-p     for q 200

if marginal cost is constant at 100 (e.i at each quantity marginal cost equals 100) then to maximize profit price should be set equal to:

a. 200

b.220

c.300

d. none of the above

if marginal cost increases to 150(ei. at each quantity marginal cost now equals 150) then to maximize profit price should be increased

true or false

in the famous song by dionne warick, dionne sings ," whats it all about alfie? it is just for the moment we live? suppose alfie responds, " yes dionne, i only care about today. the future means nothing to me." accordingly , from alfie's perspective, his discount factor equals:

a.1

b.1/2

c.0

d.-1

Explanation / Answer

b.220

False

d.-1