Afirmrsquos total cost and marginal cost functions are tc , Ask an Expert

Management Studies

A firm’s total cost and marginal cost functions are: TC = 20 Q2 + 6 Q – 10 ; MC = 40 Q + 6.

Assuming that the market price is 166 and that the marginal revenue (MR) is also 166 (it is constant at all output levels),

a. What is the profit maximizing level of output produced?

b. Prove that your answer to part a., is the profit maximizing quantity.

c. What will be maximum profits for this firm?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92030515

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