Question
Assume that a competitive firm has the total cost function: TC=1q 3 40q 2 +880q+2000 TC=1q3-40q2+880q+2000 Suppose the price of the firm's output (sold in
Assume that a competitive firm has the total cost function:
TC=1q
3
40q
2
+880q+2000
TC=1q3-40q2+880q+2000
Suppose the price of the firm's output (sold in integer units) is $550 per unit.
- How many units should the firm produce to maximize profit?
- What is the total profit at the optimal output level?
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Systems analysis and design in a changing world
Authors: John W. Satzinger, Robert B. Jackson, Stephen D. Burd
5th edition
9780324593778, 1423902289, 9781305117204, 324593775, 978-1423902287
