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You live in a small town with only one grocery store. The demand curve for food in your town is given by -1/5Q. the grocery store has a total curve given by TC = 50 + 1.25Q
A) What is the profit maximizing price and quantity of food if the firm charges the same price to everyone? How much profit will they earn?
B) Graph this situation including profits
C) How much dead weight loss is there?
D) How much consumer surplus is there?
E) How much producer surplus is there?
What would like you to do some research and find out what nation would be the most ideal markets for your new product.
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