The demand and cost function for a company are estimated to be as follows:P = 100 - Q TC = 50 + 80Q -10Q2 + 0.6Q3What price should the company charge if it wants to maximize its profit in the short run?What price should it charge if it wants to maximize its revenue in the short run Suppose the company lacks confidence in the accuracy of cost estimates expressed in a cubic equation and simply wants to use a linear approximation. Suggest a linear representation of this cubic equation. What difference would it make on the recommended profit-maximizing and revenue-maximizing prices

This question is about microeconomics, specifically the concepts of profit maximization and revenue…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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P = 100 - Q

TC = 50 + 80Q -10Q²+ 0.6Q³

What price should the company charge if it wants to maximize its profit in the short run?
What price should it charge if it wants to maximize its revenue in the short run

Suppose the company lacks confidence in the accuracy of cost estimates expressed in a cubic equation and simply wants to use a linear approximation. Suggest a linear representation of this cubic equation. What difference would it make on the recommended profit-maximizing and revenue-maximizing prices

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