Question

TR - (100-298 1004.22 9= 25 Check q=35 T=TR -TC MR = 100.49 T= (193.35)-(500+560+122) = 970 MAX price = 93 MAX Quantity =35 Profit = 970 me > MR 27.4V 9-15 4) A firm has a demand curve of q = 400 - 4p. They compute their variable costs to be, vo - 40q+.25q'. They have a fixed cost associated with the business of $10,000. What is the firm's profit maximizing price and quantity? What is their profit? Be sure to check SOC. 1Q=400-4p Q=400-4p Inverse p=100-Q TB=100g - reck - to 502, 50 - 6040,25 4p=400-Q p= 100- [TR= P.Q (100.00 (TR = loog -ar MR = TB 16000 - MR = dTR - dQ MC = dIC dQ Q=GO1 2 01220

Answer 1

VC = 4og to.25q² me = dcvc) - 4o to.se 9 = 400-4p up= 400-2 p = 100 -0.252 TR = pq - 100g - 0.252² MR = 10o - 0.58 MR-me ad profit maximi pedia 100 -0.50 - 40 +0.59 9 = 60 pa 100 -0.25 (60) = 85 Profit = TR-ic = 85/60) - 40/60) -0.25160)2 - 10000 2 - 8200 tri: 100 -0.52 -40-0.5ą = 60 -q Soc satisfied