A firm serving a market o

A firm serving a market o

A firm serving a market operates with total variable cost TVC = Q. The corresponding marginal cost is M C = 2Q. The firm faces a market demand curve P = 40 ? 3Q.a. Suppose the firm sets a uniform price that maximizes profit. What would that price be?b. Suppose the firm were able to act as a perfect first-degree price-discriminating monopolist. How much would the firm?s profit increase compared to part (a)?

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