A firm's research department has estimated that if other firms in the industry are indifferent to changes in the price of its product, its demand curve will be
Q₁ = 1150 - 50P
However, if other firms always charge the same price it does, the firm's demand curve will be
Q₂ = 250 - 10P
a. If the firm's marginal cost equals $17.50, what output and price will maximize profit?
b. If the firm's marginal cost equals $22.09, what output and price will maximize profit?

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The Answer of A firm's research department has estimated that if other firms in the industry are indifferent to changes in the price of its product, its demand curve will be Q₁ = 1150 - 50P However, if other firms always charge the same price it does, the firm's demand curve will be Q₂ = 250 - 10P a. If the firm's marginal cost equals $17.50, what output and price will maximize profit? b. If the firm's marginal cost equals $22.09, what output and price will maximize profit?

A Firm's Research Department Has Estimated That If Other Firms