Question: A firm s profit function is: ( q ) = R ( q ) - C ( q ) = 1 4 0 q -
A firms profit function is:
qRqCqqqq
where the firms revenue function is Rqq and the firms cost function is qq
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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