A firm has a short-run total cost function given as STC =q³5q² + 25q. a. If P = 100, identify the output level (q*) that will maximize the profit of the firm and calculate the firm's profit. b. If price decreases by 75%, identify the new profit-maximizing output level and calculate the firm's profit. c. If price increases by 125%, identify the new profit-maximizing output level and calculate the firm's profit.

A firm has a short-run total cost function given as STC =q³5q² + 25q. a. If P = 100, identify the output level (q*) that will maximize the profit of the firm and calculate the firm's profit. b. If price decreases by 75%, identify the new profit-maximizing output level and calculate the firm's profit. c. If price increases by 125%, identify the new profit-maximizing output level and calculate the firm's profit.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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