The total costs of a firm under perfect competition is given by the equation
TC = 5, 000 + 4Q + 2Q2 and the market price is $100 per unit.
What is the profit maximizing level of output?
2 answers
Always Always Always. Set MC=MR. MC is the first derivitive of the TC function. So, MC=4+4Q. Solve for Q.
Equating MR=MC and solving for Q is this the answer?
part b to the question says to calculate the total revenue at the profit maximizing level. I'm not sure how to do this
part b to the question says to calculate the total revenue at the profit maximizing level. I'm not sure how to do this
1 answer