Question
Using the demand and cost functions from the previous question Demand curve: Q(P)= 3,000-20P Cost function:TC(Q)= $50Q A. Calculate the firm's inverse demand function B.
Using the demand and cost functions from the previous question
Demand curve: Q(P)= 3,000-20P
Cost function:TC(Q)= $50Q
A. Calculate the firm's inverse demand function
B. Calculate the firm's total revenue function
C. Calculate the firm's profit function
D. Take the derivative of the firm's profit function to get the marginal profit function
E. Solve for the optimal output level, , by setting the marginal profit function equal to zero
F. Find the optimal price, , by substituting the optimal output level into the inverse demand function
G. Find profits at the optimal output level, , by substituting into the profit function
H. Is your answer to this question (see part F in particular) consistent with your answers to the first question?EXPLAIN
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