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Profit maximization: Suppose you have a firm that, because it has some market power, faces a market demand curve of P(Q) 25 1.1Q P(Q)=
Profit maximization: Suppose you have a firm that, because it has some market power, faces a market demand curve of P(Q) 25 1.1Q P(Q)= 25 1.1 Q. Your Total Cost function is the same as before: TC (Q) = 34+ 1.2Q + 0.8Q TC (Q) = 34 + 1.2 Q + 0.8 Q 2, where Q is your production quantity. What is your profit-maximizing output Q*, to the nearest 0.1 unit?
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
