Reference no: EM13179873

 Suppose that a firm faces a demand curve that has a constant elasticity of -2. This demand curve is given by q = 256/P^2. Suppose also that the

firm has a marginal cost curve of the form MC = 0.001q.

a) Graph these demand and marginal cost curves.

b) Calculate the marginal revenue curve associated with the demand curve; graph the curve.

c) At what output level does marginal revenue equal marginal cost?