A firm's profit equation is given by profit = -100 +160 Q - 20 Q2. Find...

Question

Question

A firm's profit equation is given by profit = -100 +160 Q - 20 Q². Find the profit maximizing output (Q).

business economics

Answer 1

Answer #1

Profit equation is given by, π = -100 + 160Q -20Q²

When profit is maximized, then,

dπ/dQ = 0

Or, 0 + 160 - 40Q = 0

Or, 40Q = 160

Or, Q = 4

Answer: option A

Answer 2

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