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c. What positive value of Q will maximize total profit? Remember, letting MR = MC signals the objective of total profit maximization. Solve MR =
c. What positive value of Q will maximize total profit? Remember, letting MR = MC signals the objective of total profit maximization. Solve MR = MC for Q. The value of Q you use should not be zero or negative. You will need to use the quadratic formula for this solution. 440 - 40 = 120 - 10Q + 1/4Q2; then -1/4Q2 + 6Q + 320 = 0; then Q2 - 24Q - 1280 = 0 Marginal Profit Applying Quadratic Formula; Q = {-(-24) +/- [(-24)2 - 4(1)(-1280)]12 }/2(1) Then Q = 24 +/- 56961/2/2; then Q = [24 +/- 75.47]/2 Q can = -25.74 or 49.74; 49.74 maximizes total profit
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