Question
total revenue equation TR = 5000Q – 5Q2 and total cost equation C = 500 + 3Q2 Calculate this firm’s profit maximizing price, quantity, total revenue, total cost, and total
Answers
Samuel
Profit maximizing can be achieved using this formula MC=MR.
Differentiate TR to get MR= 5000-10Q
Differentiate TC to get MC=6Q
5000-10Q=6Q >> Q=312.50
Use the Q to get TR and TC.
To find total profit= TR-TC.
Differentiate TR to get MR= 5000-10Q
Differentiate TC to get MC=6Q
5000-10Q=6Q >> Q=312.50
Use the Q to get TR and TC.
To find total profit= TR-TC.