You own and operate a fruit stand. Your demand curve is given by P = .5 - .002Q, where P is in dollars and Q is in pounds of fruit. Your marginal cost curve is MC = .006Q. Your fixed costs equal $10.
a. Derive your marginal revenue curve.
b. Calculate the profit maximizing price and quantity.
c. Calculate your profit.
d. Calculate consumer surplus at the profit maximizing P and Q.