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| Teaching Since: | Apr 2017 |
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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
Problem 4.
A monopolistically competitive firm faces the following demand schedule for its product.
In addition, the firm has total fixed costs equal to 20. a. If the firm has a constant marginal cost of $7 per unit, how many units should the firm
produce to maximize profit?
b. If the firm has a constant marginal cost of $7 per unit, what price should the firm charge
to maximize profit?
c. If the firm has a constant marginal cost of $7 per unit, how much profit will the firm
earn
at the profit-maximizing level of output? 1
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