Explain how much should firm produce in order to maximize, Ask an Expert

Economics

Q. following is a demand function that has been approximated for a monopolistically competitive
firm. (30 pts)
Q = 320 - 2P
If firm's TVC function is
TVC = 40Q - 1.5Q2 +1/3 Q3
Total fixed cost = $500

a. Explain how much should firm produce in order to maximize profit?

b. Illustrate what is maximum profit that firm can generate at output level (your answer in a)?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9306725

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