A firm has the following revenue and cost functions. TR = 60 Q – Q^2 TC = 1/2 Q^2 +30Q + 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 – Q^2 TC = 1/2 Q^2 +30Q + 30 Determine the quantity level at which the firm maximizes its total profit. (Hint: use marginal revenue = marginal cost rule)

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter23: Profit Maximization

Section: Chapter Questions

Problem 11E

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Question

A firm has the following revenue and cost functions.

TR = 60 Q – Q^2
TC = 1/2 Q^2 +30Q + 30
Determine the quantity level at which the firm maximizes its total profit.
(Hint: use marginal revenue = marginal cost rule)

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