Question: A firm's total revenue function is TR = 360Q - 3Q^2 Its marginal cost and its average total cost are both $60. a) Calculate the

A firm's total revenue function is TR = 360Q - 3Q^2 Its marginal cost and its average total cost are both $60. a) Calculate the firms profit maximizing price and quantity, as well as its profit at this point b) Draw the firm's demand function, marginal revenue and marginal cost on a correctly labelled diagram. Show the firm's profit on this diagram

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock 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!

A firm's total revenue function is TR= 200Q - 4Q^2 , its marginal cost is $40, and its fixed cost is zero. A) Calculate the profit-maximizing level of output, price, and profit B) Calculate the...

$hello help me... 2 The Theory of the Firm (50 pts. ) Suppose Jason starts a firm making high-end basketball shoes. He has a production function Q(L, K) = AL K where Q is the number of units...

3) An innovative new herbicide, with the main ingredient Dicamba, has attracted a remarkable amount of attention. The herbicide is quite effective for certain crops, but its drift effect may be...

Questions 2, 3, and 4 consider the market for refrigerators in the... Questions 2, 3, and 4 consider the market for refrigerators in the U.S. The May 4, 2021 print edition of The Wall Street Journal...

Questions 5, 6, and 7 consider the maritime shipping market (large container ships and oil tankers). The October 20, 2020 issue of The Economist featured an article titled "How Covid-19 Put Wind in...

The May 5, 2021 print edition of The Wall Street Journal had a story titled "EPA Eyes Emissions of Cooling Appliances."(You do not have to read this article to understand the setup of questions 2, 3,...

Question 2: For Question 2, you should assume the EPA has not banned the hydrofluorocarbons and the refrigerator industry is initially in Long Run Equilibrium. Graphically depict (using side-by-side...

1. The following relations describe the supply and demand for posters: Q D = 65,000 - 10,000 P Q S = 35,000 + 15,000 P Where Q is the quantity and P is the price of a poster, in dollars. a. Complete...

Oligopoly Theory Cournot Assume two firms 1 and 2. The inverse market demand function is given by: P=30-(q1+92) Each firm produces with marginal costs of MC = 6 Fixed costs are zero. The next...

If a train traveling at 60 km/hr crosses a pole in 30 seconds. Then find the length of the train.

Suppose, you are a CEO of a company and you just made a big investment in a new production facility. Your Chief Risk Officer provides you with the following information: Your liabilities consist of...

Question 19 (1 point) A friend of yours would like you to lend him $5,000 today to be paid bacl in 5 annual payments. What would be the equal annual end-of-year payment on this loan if you charge...

At December 31, DePaul Corporation had the following cumulative temporary differences associated with its operations: 1. Estimated warranty expense, $16 million temporary difference: expense recorded...

In this system, d = 15 cm, D = 35 cm, and the head loss from the venturi meter to the end of the pipe is given by h L = 1.5 V 2 /2g, where V is the velocity in the pipe. Neglecting all other head...

Assume the same information in E16.1, except that Angela AG converts its convertible bonds on January 1, 2023. Instructions a. Compute the carrying value of the bond payable on January 1, 2023. b....

Water (60F) is pumped from a reservoir to a large, pressurized tank as shown. The steel pipe is 4 in. in diameter and 300 ft long. The discharge is 1 cfs. The initial water levels in the tanks are...

Suppose that dA/dt = 0.0004332 A(t) represents a mathematical model for the radioactive decay of radium- 226, where A(t) is the amount of radium (measured in grams) remaining at time t (measured in...

subject: marketing channel Please give me a full answer to the following : create a new story containing the following elements: 1-tiltle , subtitle and the name of online retailer 2- a brief...

1. To provide an understanding that a person in a communication situation conveys three things at the same time: their position, basic interests and values.

4. What is meant by the statement: We are extremely limited in our willingness to allow others to put their own case in a social situation?.

8. Give three examples of how the level of confidence one has in someone can affect a communication situation.