A firm has revenue given by R(q) = 100q 3q2 and its cost function is C(q)

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A firm has revenue given by R(q) = 100q – 3q2 and its cost function is C(q) = 100 + 10q. What is the profit-maximizing level of output? What profit does the firm earn at this output level?

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Managerial Economics and Strategy

ISBN: 978-0321566447

1st edition

Authors: Jeffrey M. Perloff, James A. Brander

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Question Posted: Nov 13, 2014 03:33 AM

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A firm has revenue given by R(q) = 100q 3q2 and its cost function is C(q)

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A firm sets its output where its marginal profit is zero Marginal profit q MR q MC q 0 wh...View the full answer

Managerial Economics and Strategy

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