3. A firm faces the demand equation p = 190 – 0.6q and the total cost function TC = 40 + 30q + 0.4q² a. Find the profit-maximizing quantity of output. b. Confirm that this quantity represents maximum profits. c. Find the price that corresponds to this quantity.

3. A firm faces the demand equation p = 190 – 0.6q and the total cost function TC = 40 + 30q + 0.4q² a. Find the profit-maximizing quantity of output. b. Confirm that this quantity represents maximum profits. c. Find the price that corresponds to this quantity.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Perefect Competition

Section: Chapter Questions

Problem 13SQ

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Question

3. A firm faces the demand equation p = 190 – 0.6q and the total cost function
TC = 40 + 30q + 0.4q²
a. Find the profit-maximizing quantity of output.
b. Confirm that this quantity represents maximum profits.
C.
Find the price that corresponds to this quantity.

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