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  3. 2 suppose that a firm faces the demand curve p...

Question: 2 suppose that a firm faces the demand curve p...

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2. Suppose that a firm faces the demand curve. P 300-40. where P denotes price in dollars and O denotes total unit sales. The cost equation is TC 300+92Q. a. Determine the firms profit-maximizing output and price. 2 points b. Given the output (Q) value from part a, compute Total cost and Marginal cost when the cost equation is TC 300+92Q: 1 point c. Suppose that there is a change in the production process so that the cost equation becomes TC - 1,800+ 100+Q. Compute the new Total cost and Marginal cost at the same output level (Q value) from part a: 1 point Determine the firms new output and price level when the cost equation is TC- 1,800+ 100 + O and the demand curve remains P 300-40 d. 2 points Using your answers to part b and c, explain why the profit maximizing quantity changed in your answers to part a and part d: 1 po
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