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Professor Bong has just written the first textbook in Punk Economics. It is called Up Your Isoquant. Market research suggests that the demand curve for
Professor Bong has just written the first textbook in Punk Economics. It is called Up Your Isoquant. Market research suggests that the demand curve for this book will be Q=2000 - 100P, where P is its price. It will cost $1000 to set the book in type. This setup cost is necessary before any copies can be printed. In addition to the setup cost, there is a marginal cost of $4 per book for every book printed.
- The total revenue function for Professor Bong's book is R(Q) = ___________
- The total cost function for producing Professor Bong's book is C(Q) = ______
- The marginal revenue function is MR(Q) = _________ and the marginal cost function is MC(Q) = _______
The profit-maximizing quantity of books for professor Bong to sell is Q* = ____
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