Problem
Suppose that a firm faces a demand curve that has a constant elasticity of -2. This demand curve is given by MC = 0.001q.
a. Graph these demand and marginal cost curves.
b. Calculate the marginal revenue curve associated with the demand curve; graph this curve.
c. At what output level does marginal revenue equal marginal cost?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.