What is the level of production price and total profit per


A firm faces the following average revenue (demand) curve:
P = 100 , 0.01Q
Where Q is weekly production and P is price, measured in cents per unit. The firm's cost function is given by C = 50Q + 30,000. Assuming the firm maximizes profits,

a. What is the level of production, price, and total profit per week?
b. If the government decides to levy a tax of 10 cents per unit on this product, what will be the new level of production, price, and profit?

Solution Preview :

Prepared by a verified Expert
Managerial Accounting: What is the level of production price and total profit per
Reference No:- TGS01250404

Now Priced at $12 (50% Discount)

Recommended (92%)

Rated (4.4/5)