A price-setting firm faces a demand curve described by the equation P = 100 - 5Q and its total production costs are given by the equation TC = 12 + 30Q. With this revenue and cost information, if the firm aims to maximise total profits, it should set price P at:

A price-setting firm faces a demand curve described by the equation P = 100 - 5Q and its total production costs are given by the equation TC = 12 + 30Q. With this revenue and cost information, if the firm aims to maximise total profits, it should set price P at:

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

MCQ 25
A price-setting firm faces a demand curve described by the equation P = 100 - 5Q and its total production costs are given by the equation TC = 12 + 30Q. With this revenue
and cost information, if the firm aims to maximise total profits, it should set price P at:
A
65
В
I do not want to answer this question.
C
95
D 5
E
7
F
35

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