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. At the profit-maximizing uniform price,the firm earns economic profit of __________ when it engages in uniform pricing.
A)$3,872
B)$4,728
C)$4,874
D)$5,428
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.  At the profit-maximizing uniform price,the firm earns economic profit of __________ when it engages in uniform pricing.
A)$3,872 
B)$4,728 
C)$4,874 
D)$5,428 
E)none of the above

Quizplus · Accepted Answer

The Answer is A

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 $P = 100 - 0.5 Q$