Suppose a firm’s costs are F + v q2 where F and v are positive real numbers and the firm sells its product at the market determined price p. Profits are calculated using
A) p q – F – v q2.
B) [p -(F/q + v q)] q.
C) [(p q)/q -(F + v q)/q] q.
D) Both A and B.
ANSWER
D
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