Suppose a firm’s profit is given by the equation p = –200 + 80Q – .2Q2....
- Suppose a firm’s profit is given by the equation p = –200 + 80Q – .2Q2. Which of the following is true?
a) The firm’s marginal profit is given by the equation: Mp = 80 – .2Q.
b) The firm’s profit-maximizing output is Q = 400.
c) The firm’s profit-maximizing output is Q = 200.
d) The firm’s marginal profit is given by the equation: Mp = 80 – 2Q.
e) The firm’s profit-maximizing output is Q = 800.
I know the answer is C; however I don't understand how to get there. Please include details/explanations and steps.
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