What values of f can a profit-maximizing firm charging

Reference no: EM13185644

Suppose a monopolist producing Q units of output faces the demand curve P =20 -Q. Its total cost when producing Q units of output is TC = F + Q2, where F is a fixed cost. The marginal cost is MC = 2Q.

a) For what values of F can a profit-maximizing firm charging a uniform price earn at least zero economic profit?
b) For what values of F can a profit-maximizing firm en- gaging in perfect first-degree price discrimination earn at least zero economic profit?

Reference no: EM13185644

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