The demand and total cost functions of a good are 4P + Q 16 = 0
Question:
The demand and total cost functions of a good are
4P + Q − 16 = 0
and
TC = 4 + 2Q - 3Q/10 + Q3/20
(a) Find expressions for TR, π, MR and MC in terms of Q.
(b) Solve the equation
dπ/dQ = 0
and hence determine the value of Q which maximises profit.
(c) Verify that, at the point of maximum profit, MR = MC.
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a TRPQ b Step 1 PO42 0402 Q dr30 Q do 20 10 TRTC 40 MRdTR4 2 dQ 2 MC 2 2 4...View the full answer
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