Posted by Ann on .
uppose the demand for these jets is given by the equation:
P = 3000 - Q,
where Q denotes the quantity of jets, and P denotes its price.
So that the marginal revenue facing the firm is:
MR = 3000 - 2Q.
The marginal cost of Lockheed Martin is given by the equation:
MC(Q) = 2Q
while the average variable cost is:
AVC(Q) = Q
Further it is known that Lockheed Martin has fixed costs of 500.
Suppose Lockheed sets one price for all its customers, what is the profit maximizing quantity in this case?
WHAT IS FIRM'S PROFIT???????????