A firm has a short-run total cost function given as STC =q³5q² + 25q. a. If P = 100, identify the output level (q*) that will maximize the profit of the firm and calculate the firm's profit. b. If price decreases by 75%, identify the new profit-maximizing output level and calculate the firm's profit. c. If price increases by 125%, identify the new profit-maximizing output level and calculate the firm's profit.

A firm has a short-run total cost function given as STC =q³5q² + 25q. a. If P = 100, identify the output level (q*) that will maximize the profit of the firm and calculate the firm's profit. b. If price decreases by 75%, identify the new profit-maximizing output level and calculate the firm's profit. c. If price increases by 125%, identify the new profit-maximizing output level and calculate the firm's profit.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

ChapterB: Differential Calculus Techniques In Management

Section: Chapter Questions

Problem 5E

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