Your firm “We Work Eot U" rents access to shared open office spaces for a price of $540 per year. The market is perfectly competitive as consumers have many of these "We Work" rental companies to choose from. Your firm's total revenue function is written: TR = (540) Q. The total cost function is written: TC = 80,000+ 40Q +0.5Q? a. To maximize profits, what is the optimal number of office spaces to rent? Show your work. b. How much (in dollars) are total profits at the profit-maximizing output level? Show your work.

Your firm “We Work Eot U" rents access to shared open office spaces for a price of $540 per year. The market is perfectly competitive as consumers have many of these "We Work" rental companies to choose from. Your firm's total revenue function is written: TR = (540) Q. The total cost function is written: TC = 80,000+ 40Q +0.5Q? a. To maximize profits, what is the optimal number of office spaces to rent? Show your work. b. How much (in dollars) are total profits at the profit-maximizing output level? Show your work.

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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