What price should firm charge if it wants to maximize price

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 Suppose that a monopolistically competitive firm must build a production facility in order to produce a product. The fixed cost of this facility is FC = $24. Also, the firm has constant marginal cost, MC = $3. Demand for the product that the firm produces is given by P = 27-3Q.

a)  Fill in the table below. If any of your values have decimals, you may round to only one numeral after the decimal (nearest 10th of a dollar).


Quantity of Output Price Total Cost Average Total Cost
1
2
3
4
5
6
7
8
9


b)  How much output will this firm produce if it maximizes profit?

 

c)  What price should this firm charge if it wants to maximize profit?

Reference no: EM13234892

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