Question
A competitive firm sells its product at a price of $0.10 per unit. Its total and marginal cost functions are TC = 5 - 0.05Q
A competitive firm sells its product at a price of $0.10 per unit. Its total and marginal cost functions are
TC = 5 - 0.05Q + 0.001Q2
MC = -0.05 + 0.002Q
where TC is total cost ($) and Q is output rate (units per time period).
What is the output rate that maximizes profit?
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An Inquiry Into The Nature And Causes Of The Wealth Of Nations
Authors: Adam Smith, R H Campbell
1st Edition
0865970068, 9780865970069
