Given a demand curve of P = 225 - 1Qd and supply of P = 3 + 8Qs, find the PROFIT of the firm at the optimal level of production for the firm.
Question
Solution 1
To find the profit of the firm at the optimal level of production, we first need to find the equilibrium price and quantity. This is where the quantity demanded (Qd) equals the quantity supplied (Qs).
Step 1: Set the demand equation equal to the supply equation.
225 - 1Qd = 3 + 8Qs
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Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
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