If you are given the following total cost function and the demand equation as follows: TC = 40+ 50Q +5Q^2 P= 170 -5 Q where P is price level, Q is quantity sold and TC is total cost. The profit maximizing output level in the above model is:

If you are given the following total cost function and the demand equation as follows: TC = 40+ 50Q +5Q^2 P= 170 -5 Q where P is price level, Q is quantity sold and TC is total cost. The profit maximizing output level in the above model is:

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 21P

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A: Answer to the question is as follows:

Question

If you are given the following total cost function
and the demand equation as follows:
TC = 40+ 50Q +5Q^2
P= 170 -5 Q
where P is price level, Q is quantity sold and TC is
total cost.
The profit maximizing output level in the above
model is:
O a. 10
O b. 6
O c. 110
O d. 20

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