Question: A firm s profit function is: ( q ) = R ( q ) - C ( q ) = 1 4 0 q -

A firms profit function is:
(q)=R(q)-C(q)=140q-(325+40q+10q2)
where the firms revenue function is R(q)=140q and the firms cost function is 325+40q+10q2.
What is (a) the output level that maximizes the firms profit? At the profit maximizing level of output, what is
(b) the firms revenue? What is (c) the firms variable cost? What is (d) the firms profit? And, finally, (e)
should the firm operate or shut down in the short run?

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