3. A firm faces the following total cost function and inverse demand functions:C = 3Q² + 30Q5001:Q² +10Q3Pwhere Q is the output quantity and P the price of the product. Compute the profit maximisinglevel of output.

C=3Q2+30QP=10Q-13Q2+500QNow,TC=3Q2+30QMC=∂TC∂QMC=6Q+30Now,TR=P×QTR=(10Q-13Q2+500Q)QTR=10Q2-13Q3+500F…

3. A firm faces the following total cost function and inverse demand functions: C = 3Q2 + 30Q = 10Q -02 500 1 Q²+ P where Q is the output quantity and P the price of the product. Compute the profit maximising level of output.

3. A firm faces the following total cost function and inverse demand functions: C = 3Q2 + 30Q = 10Q -02 500 1 Q²+ P where Q is the output quantity and P the price of the product. Compute the profit maximising level of output.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 5SQ

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Question

3. A firm faces the following total cost function and inverse demand functions:
C = 3Q² + 30Q
500
1
:Q² +
10Q
3
P
where Q is the output quantity and P the price of the product. Compute the profit maximising
level of output.

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