Question
3a.A firm's demand function is Q = 40 - 2P and its total cost function is defined as TC=100+2Q + 0.25Q 2 Calculate the (a)
3a.A firm's demand function is Q = 40 - 2P
and its total cost function is defined as TC=100+2Q + 0.25Q2
Calculate the (a) inverse demand, (b) total revenue function, (c) marginal revenue, (d) marginal cost and then (e) determine the level of output that yields the profit maximum with the given information. What is the level of profit at the optimum? (5 points)
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Modern Principles of Economics
Authors: Tyler Cowen, Alex Tabarrok
3rd edition
1429278390, 978-1429278416, 1429278412, 978-1429278393
