Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Assume that a competitive firm has the total cost function: TC=1q 3 40q 2 +770q+1700 TC=1q3-40q2+770q+1700 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
+770q+1700
TC=1q3-40q2+770q+1700
Suppose the price of the firm's output (sold in integer units) is $600 per unit.
Create tables (but do not use calculus) with columns representing cost, revenue, and profit to find a solution.
1)How many units should the firm produce to maximize profit?
Please specify your answer as an integer.
2)
What is the total profit at the optimal output level?
Please specify your answer as an integer.
please type nswers in order and correct rounding
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started