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A Price-Setting Firm Faces the Following Estimated Demand and Average

Question 85

Multiple Choice

A price-setting firm faces the following estimated demand and average variable cost functions: A price-setting firm faces the following estimated demand and average variable cost functions: where is the quantity demanded,P is price,M is income,and is the price of a related good.The firm expects income to be $40,000 and to be $53.Total fixed cost is $2,600,000.What price should the firm charge in order to maximize profit? A) $356 B) $400 C) $420 D) $445 E) $510 A price-setting firm faces the following estimated demand and average variable cost functions: where is the quantity demanded,P is price,M is income,and is the price of a related good.The firm expects income to be $40,000 and to be $53.Total fixed cost is $2,600,000.What price should the firm charge in order to maximize profit? A) $356 B) $400 C) $420 D) $445 E) $510 where A price-setting firm faces the following estimated demand and average variable cost functions: where is the quantity demanded,P is price,M is income,and is the price of a related good.The firm expects income to be $40,000 and to be $53.Total fixed cost is $2,600,000.What price should the firm charge in order to maximize profit? A) $356 B) $400 C) $420 D) $445 E) $510 is the quantity demanded,P is price,M is income,and A price-setting firm faces the following estimated demand and average variable cost functions: where is the quantity demanded,P is price,M is income,and is the price of a related good.The firm expects income to be $40,000 and to be $53.Total fixed cost is $2,600,000.What price should the firm charge in order to maximize profit? A) $356 B) $400 C) $420 D) $445 E) $510 is the price of a related good.The firm expects income to be $40,000 and A price-setting firm faces the following estimated demand and average variable cost functions: where is the quantity demanded,P is price,M is income,and is the price of a related good.The firm expects income to be $40,000 and to be $53.Total fixed cost is $2,600,000.What price should the firm charge in order to maximize profit? A) $356 B) $400 C) $420 D) $445 E) $510 to be $53.Total fixed cost is $2,600,000.What price should the firm charge in order to maximize profit?


A) $356
B) $400
C) $420
D) $445
E) $510

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