A firm has the following revenue and cost functions. TR= 60 - Q - Q2 TC = 1/2 Q2 - 32 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 - 32 Q + 30 Determine the quantity level at which the firm maximizes its total profit. (Hint: use marginal revenue = marginal cost rule).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A firm has the following revenue and cost functions.

TR= 60 - Q - Q²

TC = 1/2 Q² - 32 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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