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Suppose a competitive firm has as its total cost function: T C = 2 1 + 3 q 2 Suppose the firm's output can be
Suppose a competitive firm has as its total cost function:
Suppose the firm's output can be sold in integer units at $ per unit.
Use calculus and formulas to find a solution dont just build a table in a spreadsheet as in the
previous lesson
Hint : The first derivative of the total profit function, which is cumulative, is the marginal profit function, which is
incremental. The lecture and formula summary explain how to compute the derivative.
Set the marginal profit equal to zero to define an equation for the optimal quantity q
Hint : When computing the total profit for a candidate quantity, use the total profit function you define rather
than summing the marginal profits using the marginal profit function
How many integer units should the firm produce to maximize profit?
Please specify your answer as an integer. In the case of equal profit from rounding up and down for a non
integer initial solution quantity, proceed with the higher quantity.
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