Question: Suppose that you are given a firm's demand function as Q-2000-20P And firm's cost function is given as: TC-0.05Q +10,000 (i) Find the firm's

Suppose that you are given a firm's demand function as Q-2000-20P And

Suppose that you are given a firm's demand function as Q-2000-20P And firm's cost function is given as: TC-0.05Q +10,000 (i) Find the firm's total revenue (TR) and her marginal revenue (MR) (2marks) (2marks) (2marks) (ii) Calculate the firm's marginal costs (MC) (iii) Calculate the firm's average costs (iv) From the information given above, calculate the firm's profit maximizing output and price levels (Q* and P*) (v) Calculate the firm's maximum profit (II) (vi) Show that this is the true maximum profit by using the second order conditions as a test (2marks) (5marks) (2marks)

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