Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Suppose that the revenue and cost functions for a firm are given as follows TR = 70q - q 2 TC = q 2 +
Suppose that the revenue and cost functions for a firm are given as follows
TR = 70q - q2
TC = q2 + 30q + 100
a. Find the quantity that maximizes profit. (find q that's at the top of the mountain)
b. Verify that the q you've found in a. is a max; rather than a min. (2nd order condition).
Notes: Profit = Total Revenue - Total Cost. Show all steps in your calculations.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started