A firm faces the market demand curve: P=90-Q/4 where P = price and Q = output The firm has the total cost function: TC =1/4Q^2 –6Q+40 (a) Write out the firm's profit function in terms of output (Hint: rewrite the demand curve with price as a function of output).

A firm faces the market demand curve: P=90-Q/4 where P = price and Q = output The firm has the total cost function: TC =1/4Q^2 –6Q+40 (a) Write out the firm's profit function in terms of output (Hint: rewrite the demand curve with price as a function of output).

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter25: Monopoly

Section: Chapter Questions

Problem 9E

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Question

A firm faces the market demand curve: P=90-Q/4 where P = price and Q = output
The firm has the total cost function: TC =1/4Q^2 -6Q+40
(a) Write out the firm's profit function in terms of output (Hint: rewrite the demand curve with price
as a function of output).

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