Question: Suppose you estimate the short - run total cost function to be TC = 2 0 0 + 1 0 Q + 0 . 1
Suppose you estimate the shortrun total cost function to be TC Q Q
Also, suppose you can sell every unit produced at a $ price so you have a marginal revenue of $ for each unit.
If so which rounded value below is closest to your maximum profit at the optimal profit maximizing quantity? Hint solve for TR PQ and solve for TC using total cost function and your optimal Q
Question options:
a
$
b
$
c
$
d
$
c
d
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