A firm has the following revenue and cost functions. TR = 120 Q – Q2 TC =  Q2 +30 Q + 10 Determine the quantity level at which the firm maximizes its total profit. (Hint:  use marginal revenue = marginal cost rule)

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter23: Profit Maximization
Section: Chapter Questions
Problem 6E
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A firm has the following revenue and cost functions.

TR = 120 Q – Q2

TC =  Q2 +30 Q + 10

Determine the quantity level at which the firm maximizes its total profit.

(Hint:  use marginal revenue = marginal cost rule)                         

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