What is this total cost function? How do you identify profit in this model?
A firm that produces a single product faces a demand function : q = 10,000P - 100P where q is the quantity demanded, and p is the firmís price. Its total cost function is : TC(q)= 200+20q+q2/300.
the question is : What is the profit-maximising level of production for this firm? answer= q=3000
What is the firmís maximum profit? R= 119800
Calculate (discrete) marginal revenue and (discrete) marginal cost at an output of 2000 ?. MR=60 , Mc= 33.3
The correct answers are in brackets after the question , but I am more interested in explaining how the answer was obtained. with thanks