question archive The market demand and supply functions for some commodity Q have been estimated (this market is assumed to be perfectly competitive), respectively, as: QD= 20,000 -400P QS= 5,000 + 600P where P is the price (dollars per unit) and Q is the rate of sales (output per month) Consider a single firm in this market which has a total cost function given as: TC = 500 + 25q -5q^2+ (2/3)q^3 where q is the firm’s output level What is this firm’s profit maximizing level of output? What are its profits? Numbers expected
The market demand and supply functions for some commodity Q have been estimated (this market is assumed to be perfectly competitive), respectively, as: QD= 20,000 -400P QS= 5,000 + 600P where P is the price (dollars per unit) and Q is the rate of sales (output per month) Consider a single firm in this market which has a total cost function given as: TC = 500 + 25q -5q^2+ (2/3)q^3 where q is the firm’s output level What is this firm’s profit maximizing level of output? What are its profits? Numbers expected
Subject:EconomicsPrice: Bought3
The market demand and supply functions for some commodity Q have been estimated (this market is assumed to be perfectly competitive), respectively, as:
QD= 20,000 -400P
QS= 5,000 + 600P
where P is the price (dollars per unit) and Q is the rate of sales (output per month)
Consider a single firm in this market which has a total cost function given as:
TC = 500 + 25q -5q^2+ (2/3)q^3
where q is the firm’s output level
What is this firm’s profit maximizing level of output? What are its profits?
Numbers expected
