A firm has the following revenue and cost functions. TR= 60 - Q - Q2 TC = 1/2 Q2 + 30 Q + 30 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= 60 - Q - Q2 TC = 1/2 Q2 + 30 Q + 30 Determine the quantity level at which the firm maximizes its total profit. (Hint: use marginal revenue = marginal cost rule)
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter10: The Firm And The Industry Under Perfect Competition
Section: Chapter Questions
Problem 4TY
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A firm has the following revenue and cost functions.
TR= 60 - Q - Q2
TC = 1/2 Q2 + 30 Q + 30
Determine the
quantity
level at which the firm maximizes its total profit.
(Hint: use marginal revenue = marginal cost rule)
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