A Milton company works in perfect competition market, its total cost curve in short run is given in this function: TC = 200 − 4Q + 0.5Q 2 a. What output level should the firm produce to maximize profit? knowing that average revenue is $10. b. What is the firm profit at this 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 5SQP
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A Milton company works in perfect competition market, its total cost curve in short run is
given in this function:
TC = 200 − 4Q + 0.5Q
2
a. What output level should the firm produce to maximize profit? knowing that average
revenue is $10.
b. What is the firm profit at this level of output?

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