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Mathematics 15 Online
OpenStudy (anonymous):

Suppose 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? I found Q*=750 P*=2250 WHAT IS FIRM'S PROFIT???????????

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