Question
(3 pt.) Use your quadratic cost function and the following demand curve. P = 900 - 0.03Q MR = 900 - .06Q Calculate marginal cost
(3 pt.) Use your quadratic cost function and the following demand curve.
P = 900 - 0.03Q MR = 900 - .06Q
Calculate marginal cost (MC) and average cost (AC), price (P) and marginal revenue (MR) Graph MC, AC, P, and MR as a function of output (you may use Excel or graph these relationships by hand). Show the price and output that maximizes profit in this graph. Then use algebra to calculate the price and output (view output as a measure of desired run production for the season) that will maximize the firms profit. Calculate your profits at this price and output level.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Auditing Markets Products And Marketing
Authors: David Parmerlee
1st Edition
0658001337, 978-0658001338
