Question: 1.Assume the following for a firm: Demand function: P = 53 - Q Total Revenue function: TR = 53Q - Q 2 Marginal Revenue: MR

1.Assume the following for a firm:

Demand function:P = 53 - Q

Total Revenue function: TR = 53Q - Q2

Marginal Revenue: MR = 53 - 2Q

Total cost function: TC = 1,000 + 5Q + Q2

Marginal cost function: MC = 5 + 2Q

Average cost function: AC = 1,000/Q + 5 + Q

The profit maximising level of output will be:

(a)11

(b)12

(c)13

(d)14

2.Using the profit maximising level from the previous question above, the profit maximising Total Revenue will be:

(a)492

(b)352

(c)406

(d)390

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