8

Question 9 (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, what is your profit maximizing quantity to produce? (Hint: solve for MC = MR or MC = $500 using your derived MC function.)

Question 9 options:

a)

1550

b)

1850

c)

2150

d)

2450