Question
Given the following total revenue and total cost functions of a firm: TR=22Q-0.5Q 2 ; TC=(1/3)Q 3 -8.5Q 2 +50Q+90 a. Determine the level of
Given the following total revenue and total cost functions of a firm:
TR=22Q-0.5Q2;
TC=(1/3)Q3-8.5Q2+50Q+90
a. Determine the level of output at which the firm maximizes it total profit. (Hint: Calculate the MR and MC function. Let MC = MR)
b. Determine the maximum profit that the firm could earn.
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New Products Management
Authors: C Merle Crawford
12th Edition
1260512010, 9781260512014
