Determine the profit maximizing price and quantity


You own and operate a fruit stand. Your marginal cost curve is MC = .006Q. Your fixed costs equal $10. Your demand curve is given by P = .5 - .002Q, where P is in dollars and Q is in pounds of fruit.

1. Obtain your marginal revenue curve.

2. Determine the profit maximizing price and quantity.

3. Determine your profit.

4. Determine consumer surplus at the profit maximizing P and Q.

Request for Solution File

Ask an Expert for Answer!!
Macroeconomics: Determine the profit maximizing price and quantity
Reference No:- TGS0871040

Expected delivery within 24 Hours