Suppose a firm faces the inverse demand curve . The firm has the total cost curve .
a. Assuming that the firm operates in the market, find the firm's profit maximizing output, price, and profit.
b. Given your answer to part a, would this firm stay in the market or exit?

Question

Suppose a firm faces the inverse demand curve  . The firm has the total cost curve  .
a. Assuming that the firm operates in the market, find the firm's profit maximizing output, price, and profit.
b. Given your answer to part a, would this firm stay in the market or exit?

Quizplus · Accepted Answer

The Answer of Suppose a firm faces the inverse demand curve  . The firm has the total cost curve  .
a. Assuming that the firm operates in the market, find the firm's profit maximizing output, price, and profit.
b. Given your answer to part a, would this firm stay in the market or exit?

Suppose a Firm Faces the Inverse Demand Curve