A Firm Faces the Demand for Its Product $P = 100 - 0.5 Q$

question 2

Multiple Choice

A firm faces the demand for its product, $P = 100 - 0.5 Q$ ,as shown in the figure below.It produces under conditions of constant costs in the long run,and LMC = LAC = $12 per unit. If the firm must set a uniform price for the good,what price will it set to maximize its profit in the long run?

• A)$12
• B)$24
• C)$25
• D)$30
• E)none of the above

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