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Assume that a competitive firm has the total cost function: TC=1q 3 40q 2 +740q+1600 TC=1q3-40q2+740q+1600 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
+740q+1600
TC=1q3-40q2+740q+1600
Suppose the price of the firm's output (sold in integer units) is $650 per unit.
Create tables (but do not use calculus) with columns representing cost, revenue, and profit to find a solution.
- How many units should the firm produce to maximize profit?
- What is the total profit at the optimal output level?
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