Answered step by step
Verified Expert Solution
Link Copied!

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Microeconomics

Authors: Hal R. Varian

9th edition

978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968

More Books

Students also viewed these Economics questions

Question

1. To understand how to set goals in a communication process

Answered: 1 week ago