Question: This question involves determining the profit maximizing prices and/or quantities from the given information. Work all parts and show your work in the space provided (or add extra space to your answers in this document as needed).

1. Firm X: Use the demand function: P = 30 – 2

And the marginal cost function: MC = 20 to determine P and Q for profit maximization. Then, suppose a government subsidy of $6 per unit is imposed. What does the firm do with respect to price and quantity?

Price: $2.99

Solution: The downloadable solution consists of 1 pages
Deliverable: Word Document