Question
A firm faces the following inverse demand equation for the commodity it produces: P = 100 Q where P represents the price/unit of the commodity
A firm faces the following inverse demand equation for the commodity it produces:
P = 100 Q
where P represents the price/unit of the commodity it produces and Q represents the level of output produced.
The cost structure of this firm is summarized by the following Total Cost function:
C = 1/3 Q3 7Q2 + 115.75Q + 20
where C represents the Total Cost of production.
A: What is the firms Total Revenues function?
B: What is the firms marginal revenue function?
C: What is this firms marginal cost function?
D: What is this firms Total Benefit (profits) function?
E: Find the benefit (profit) maximizing level of output?
F: What are this firms maximum benefits (profits)?
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