Questions 21-25 relate to the following information. Suppose a firm faces demand function p(q)-200-g, and has cost function C(q)= 100+ 3q Construct the profit function, R(q)-C(q). Assuming that the y axis measures profits/dollars, at what dollar amount does the profit function intersect the y axis? (Enter a single number, without dollar signs.) What quantity maximizes profit? Hint: find the value of q at the turning point. 25 What is (maximum) profit at this turning point? (Do not include dollar signs.) 2400

Questions 21-25 relate to the following information. Suppose a firm faces demand function p(q)-200-g, and has cost function C(q)= 100+ 3q Construct the profit function, R(q)-C(q). Assuming that the y axis measures profits/dollars, at what dollar amount does the profit function intersect the y axis? (Enter a single number, without dollar signs.) What quantity maximizes profit? Hint: find the value of q at the turning point. 25 What is (maximum) profit at this turning point? (Do not include dollar signs.) 2400

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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