Suppose a firm faces the following demand čürve: and the following cost function: C(Q) = 100 + 2Q+ 8Q² – 0.1Q %3D (a) What is the function for their total revenue? (b) What is the function for their marginal revenue? (c) What is the function for their marginal cost? (d) At what quantity do they maximize profit? (e) Suppose I instead tell you the firm faces a cost function of the form C(Q) = B+10Q+8Q² - 0.1Q³, but do not give you the value of B. Can you still solve for the firm's profit maximizing quantity? Why or why not? %3D

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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solve b, c, and d

Suppose a firm faces the following demand curve: P(Q) = 90–2Q-0.1Q²,
and the following cost function: C(Q) = 100+ 2Q + 8Q2 – 0.1Q
%3D
(a) What is the function for their total revenue?
(b) What is the function for their marginal revenue?
(c) What is the function for their marginal cost?
(d) At what quantity do they maximize profit?
(e) Suppose I instead tell you the firm faces a cost function of the form
C(Q) = B+10Q+8Q2-0.1Q³, but do not give you the value of B.
Can you still solve for the firm's profit maximizing quantity? Why
or why not?
%3D
Transcribed Image Text:Suppose a firm faces the following demand curve: P(Q) = 90–2Q-0.1Q², and the following cost function: C(Q) = 100+ 2Q + 8Q2 – 0.1Q %3D (a) What is the function for their total revenue? (b) What is the function for their marginal revenue? (c) What is the function for their marginal cost? (d) At what quantity do they maximize profit? (e) Suppose I instead tell you the firm faces a cost function of the form C(Q) = B+10Q+8Q2-0.1Q³, but do not give you the value of B. Can you still solve for the firm's profit maximizing quantity? Why or why not? %3D
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