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 can practice first-degree price discrimination,it can make a maximum profit of
A)$1,872.
B)$1,936.
C)$7,744.
D)$9,856.

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 can practice first-degree price discrimination,it can make a maximum profit of
A)$1,872. 
B)$1,936. 
C)$7,744. 
D)$9,856.

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 can practice first-degree price discrimination,it can make a maximum profit of
A)$1,872. 
B)$1,936. 
C)$7,744. 
D)$9,856.

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 $P = 100 - 0.5 Q$