Profit maximization
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A firm's marginal profit, P, as a function of its total cost, C, is given by the equation below a) Find the profit function, P(C), if P = S8 when C = S44. b) At what cost will the firm break even (P = 0)?dP 224 dC (C 53/2a) P(C)= (Type an exact answer, using radicals as needed.)b) The firm breaks even when C = (Simplify your answer.)
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numerade.com
Maximizing the Profit Margin? According to the marginal principle, the firm should choose the quantity of output at which price equals marginal cost. A tempting alternative is to maximize the firm's profit margin, defined as the difference between price and short-run average total cost. Use the firm's short-run cost curves to evaluate this approach. Draw the firm's short-run supply curve and compare it to the supply curve of a firm that maximizes its profit. | Numerade
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