The demand and total cost functions of a good are 4P Q 16 0 and TC 4 2Q 3Q 10 Q 3 20 (a) Find expressions for TR, , MR and MC in terms of Q (b) Solve the equation d dQ 0 and hence determine the value of Q which maximises profit (c) Verify that, at the point of maximum profit, MR MC ...

a TRPQ b Step 1 PO42 0402 Q dr30 Q do 20 10 TRTC 40 MRdTR4 2 dQ 2 MC 2 2 4 ...

The demand and total cost functions of a good are 4P + Q 16 = 0

Question:

The demand and total cost functions of a good are
4P + Q − 16 = 0
and
TC = 4 + 2Q - 3Q/10 + Q³/20

(a) Find expressions for TR, π, MR and MC in terms of Q.
(b) Solve the equation

dπ/dQ = 0

and hence determine the value of Q which maximises profit.
(c) Verify that, at the point of maximum profit, MR = MC.

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Mathematics for Economics and Business

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9th edition

Authors: Ian Jacques

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Question Posted: Apr 18, 2019 09:30 AM

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The demand and total cost functions of a good are 4P + Q 16 = 0

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