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A firm's total cost of producing Q units of output is C (Q) = 200 +...

A firm's total cost of producing Q units of output is C (Q) = 200 + 50Q. The inverse demand curve for the firm's product is P(Q) = 80-Q, where P denotes the price of the product.


a) If the price of the product is set equal to the firm's average, how much will the firm produce? Hint: choose the larger of the two numbers. Show your work.


b) If the firm is under marginal cost pricing, how many units will the firm produce? Show your work.

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