Question #100588

Given : TC=Q2+2Q+2 and TR=8Q-3 then

A. calculate profit maximizing level of output

B. maximum profit

A. calculate profit maximizing level of output

B. maximum profit

Expert's answer

Solution:

Profit is TR minus TC

FWe compose the profit function and find its derivative:

"Profit=8Q-3-Q^2-2Q-2"

"Profit=-Q^2+6Q-5"

"Profit'=-2Q+6"

"-2Q+6=0\n"

"Q=3\n"

Answer: profit maximizing level of outputÂ Â Q=3

B.

Answer: maximum profit 4

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