Given the following total-revenue and total-cost functions of a firm: TR = 4Q TC = 0.04Q³ – 0.9Q² + 10Q + 5 1. Determine the level of output at which the firm maximizes its total profit. 2. Determine the maximum profit that the firm could earn.
Given the following total-revenue and total-cost functions of a firm: TR = 4Q TC = 0.04Q³ – 0.9Q² + 10Q + 5 1. Determine the level of output at which the firm maximizes its total profit. 2. Determine the maximum profit that the firm could earn.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
ChapterB: Differential Calculus Techniques In Management
Section: Chapter Questions
Problem 1E
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Given the following total-revenue and total-cost functions of a firm:
TR = 4Q
TC = 0.04Q³ – 0.9Q² + 10Q + 5
1. Determine the level of output at which the firm maximizes its total profit.
2. Determine the maximum profit that the firm could earn.
For the following total-profit function of a firm:
= 144X – 3X² – XY – 2Y² + 120Y – 35
Determine the level of output of each commodity at which the firm maximizes its total profit.
Determine the value of the maximum amount of the total profit of the firm.
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