A firm has the following revenue and cost functions. TR = 120 Q – Q2 TC =1/2Q2 +30 Q + 10 Determine the quantity level at which the firm maximizes its total profit. (Hint: use marginal revenue = marginal cost rule)
A firm has the following revenue and cost functions. TR = 120 Q – Q2 TC =1/2Q2 +30 Q + 10 Determine the quantity level at which the firm maximizes its total profit. (Hint: use marginal revenue = marginal cost rule)
Chapter23: Profit Maximization
Section: Chapter Questions
Problem 11E
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Question
A firm has the following revenue and cost functions.
TR = 120 Q – Q2
TC =1/2Q2 +30 Q + 10
Determine the quantity level at which the firm maximizes its total profit.
(Hint: use marginal revenue = marginal cost rule)
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