(Solution) - Suppose that a firm faces a demand curve that has -(2025 Original AI-Free Solution)

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Suppose that a firm faces a demand curve that has a constant elasticity of ? 2. This demand curve is given by
q = 256 / P2
Suppose also that the firm has a marginal cost curve of the form
MC = 0:001q
a. Graph these demand and marginal cost curves.
b. Calculate the marginal revenue curve associated with the demand curve; graph this curve.
c. At what output level does marginal revenue equal marginal cost?