A firm faces the demand schedule p=120−3q and the total cost schedule TC=120+36q+1.2q2 a. Use the profit function to find the profit maximizing output. b. Verify that your answer in part (f) is a maximum. c. What is profit at the profit-maximizing output?

A firm faces the demand schedule p=120−3q and the total cost schedule TC=120+36q+1.2q2 a. Use the profit function to find the profit maximizing output. b. Verify that your answer in part (f) is a maximum. c. What is profit at the profit-maximizing output?

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Perfect Competition

Section: Chapter Questions

Problem 1QP

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Question

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A firm faces the demand schedule

p=120−3q

and the total cost schedule

TC=120+36q+1.2q²

a. Use the profit function to find the profit maximizing output.

b. Verify that your answer in part (f) is a maximum.

c. What is profit at the profit-maximizing output?

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