Suppose the demand equation facing a firm is Q = 1000 – 5P, MR =
200 – 0.4 Q, and MC = $20.
Compute the maximum profit the firm can earn.
Suppose the firm is considering a quantity discount. It offers
the first 400 units at a price of $120, and further units at a
price of $80. How many units will the consumer buy in total?
Compute the profit if the quantity discount is
implemented.
If the firm implemented...