Write out the total cost and total revenue functions in terms of Q.

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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A firm has the following average cost and demand function

Ac= 3Q+7+12/Q

Q= 10-P

  1. Write out the total cost and total revenue functions in terms of Q.
  2. Find the average cost, marginal cost, average revenue and marginal revenue functions.
  • Formulate the total profit function in terms of Q.
  1. Find the profit maximization level of output.
  2. What is the maximum profit.
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