8

Question 10 (1 point)

Suppose you estimate the short-run total cost function to be TC = 200 + 10Q + 0.1Q². Also, suppose you can sell every unit produced at a $500 price so you have a marginal revenue of $500 for each unit. If so, which rounded value below is closest to your maximum profit at the optimal profit maximizing quantity? (Hint, solve for TR = P*Q and solve for TR using total cost function and your optimal Q)

Question 10 options:

a)

$550,000

b)

$450,000

c)

$600,000

d)

$500,000