Question: A firm has the following total-cost and demand functions: C=1/3Q^3 - 7Q^2 + 111Q +50 Q= 100-P a) Does the total-cost function satisfy the coefficient

A firm has the following total-cost and demand functions:

C=1/3Q^3 - 7Q^2 + 111Q +50

Q= 100-P

a) Does the total-cost function satisfy the coefficient restrictions of (9.5 [a, c, d > 0 ; b<0 ; b^2<3ac])

b) Write out the total-revenue function R in terms of Q

c) Formulate the total-profit function (pie) in terms of Q

d) Find the profit-maximizing level of output Q*

e) What is maximum profit?

Step by Step Solution

3.38 Rating (142 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a Yestotalcost function satisfy the coefficient restrictions C13Q3 7Q2 111Q 50 Restric... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Related Book