The demand function is 2Q=200-P
This is the graph http://img156.imageshack.us/img156/8899/untitledrw6.jpg
The info is: The cost of dina’s coiffeur is that it has 2 perm machines each has a cost of $100 and a unit cost of a perm is $20
I dont know how to begin with the info given.
I need to find the maximizing profit in a perfectly competitve industry and monopoly.
The formula for profit is
Profit = (p x q) – (atc x q ) or (p x q) – (w x l) – (r x k) – FC
But i dont know what numbers to plug in.
Also, how do i find the marginal cost, so i can draw the graph.
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