3. The demand and total cost functions of a good arerespectively 4P+Q-16 =0 and3Q QTC = 4+ 2Q-1020a) Find expressions for TR, (profit) T , MR, and MC interms of Q.b) Solve the equation= 0dQand hence determine the value of Q which maximizesprofit.c) Verify that, at the point of maximum profit, MR=MC.

Answer to the question is as follows :

3. The demand and total cost functions of a good are respectively 4P+Q-16 =0 and 3Q, Q' TC = 4 + 2Q - + 10 20 a) Find expressions for TR, (profit) a , MR, and MC in terms of Q. b) Solve the equation dQ and hence determine the value of Q which maximizes profit. c) Verify that, at the point of maximum profit, MR=MC.

3. The demand and total cost functions of a good are respectively 4P+Q-16 =0 and 3Q, Q' TC = 4 + 2Q - + 10 20 a) Find expressions for TR, (profit) a , MR, and MC in terms of Q. b) Solve the equation dQ and hence determine the value of Q which maximizes profit. c) Verify that, at the point of maximum profit, MR=MC.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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