Homework Question 1: Find the quantity and price that maximize profit for a firm with demand...

Question

Question

business economics

Answer 1

Answer #1

Profit is maximized where MR = MC

P = 400 - 3Q

TR = PQ = 400Q - 3Q²

MR = d(TR)/dQ = 400 - 6Q

MC = dC/dQ = 2Q

Equating MR with MC:

400 = 8Q

Q = 50 and P = 400 - 3 x 50 = 250

Answer 2

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