A firm faces the following average revenue (demand) curve:
P=120-0.02Q
Where Q is weekly production and P is price, measured in cents per unit. The firm's cost function is given by C=60Q+25000. Assume that the firm maximizes profits.
a) What is the level of production, price, and total profit per week?
b) If the government decides to levy a tax of 14 cents per unit on this product, what will be the new level of production, price, and profit?
Please help me out with steps, not only the answer, thank you very much
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