The market demand and supply functions for a type of carpet known as KP-7 have been estimated, respectively, as:                         QD = 160 – 6P,                         QS = – 100 + 20P. where P is the price (dollars per yard) and Q is the rate of sales (hundreds of yards per month). A typical firm in this market has a total cost function given as:                         TC = 100 – 22q + 2q2, where q is the firm’s output level. The optimal amount to produce for the typical firm is q =

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Chapter1: Making Economics Decisions
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The market demand and supply functions for a type of carpet known as KP-7 have been estimated, respectively, as:

                        QD = 160 – 6P,

                        QS = – 100 + 20P.

where P is the price (dollars per yard) and Q is the rate of sales (hundreds of yards per month).

A typical firm in this market has a total cost function given as:

                        TC = 100 – 22q + 2q2,

where q is the firm’s output level.

The optimal amount to produce for the typical firm is q =

 
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