Question
A firm faces a demand curve given by: q = 100 - 0.2P . The firm has total cost curve of the form TC =
A firm faces a demand curve given by: q = 100 - 0.2P.
The firm has total cost curve of the form TC = 2q + 24q + 30.
a.Calculate the marginal revenue curve in term of q.
b.Calculate the marginal cost curve in term of q.
c.What output level should the firm produce to maximize profit?
d.What is the maximum profit of the firm?
e.Set up a table or spreadsheet for output (Q), price (P), total revenue (TR), marginal revenue (MR), total cost (TC), marginal cost (MC), total profit (), and marginal profit (M)?
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Managerial Economics A Problem Solving Approach
Authors: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
4th edition
1305259335, 978-1305259331
