A firm faces the demand for its product, $P = 100 - 0.5 Q$ ,as shown in the figure below.It produces under conditions of constant costs in the long run,and LMC = LAC = $12 per unit. If the firm must set a uniform price for the good,what price will it set to maximize its profit in the long run?
A)$12
B)$24
C)$25
D)$30
E)none of the above

Question

A firm faces the demand for its product, $P = 100 - 0.5 Q$ ,as shown in the figure below.It produces under conditions of constant costs in the long run,and LMC = LAC = $12 per unit.  If the firm must set a uniform price for the good,what price will it set to maximize its profit in the long run?
A)$12 
B)$24 
C)$25 
D)$30 
E)none of the above

Quizplus · Accepted Answer

The Answer of A firm faces the demand for its product, $P = 100 - 0.5 Q$ ,as shown in the figure below.It produces under conditions of constant costs in the long run,and LMC = LAC = $12 per unit.  If the firm must set a uniform price for the good,what price will it set to maximize its profit in the long run?
A)$12 
B)$24 
C)$25 
D)$30 
E)none of the above

A Firm Faces the Demand for Its Product P=100−0.5QP = 100 - 0.5 QP=100−0.5Q

A Firm Faces the Demand for Its Product $P = 100 - 0.5 Q$