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Suppose a firm's inverse demand curve is given by P=120 - 0.5Q, and its cost equation is C = 420 + 60 Q + Q2.

Find the firm's optimal quantity, price, and profit (1) by using the profit and marginal profit equations and (2) by setting MR equal to MC.

 

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Anne Gillian Duero
Anne Gillian DueroLv10
28 Sep 2019

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Related questions

4. Suppose a firm's inverse demand curve is given by P = 120 - 0.5Qand its cost equation is C = 420 + 60Q + Q^2
a. Find the firm's optimal quantity (Q), price, and profit:

(1) by using the profit and marginal profit equations and

(2) by setting MR = MC.


b. Suppose instead that the firm can sell any and all of its output at a fixed market price of P = 120. Find the firm's optimal output.

The inverse demand for a firm's product is P = 400 - Q - 4Q2. The firm's cost of production is

C(Q) = 16Q - Q2 + 4Q3. The firm's problem is to find the profit-maximizing point on its demand curve.

a. Calculate the firm's marginal revenue function.

b. Calculate the firm's optimal price and output.

c. Calculate the profit using the equilibrium Q.

Suppose we have a Monopolist with the following Demand Curve:

QD = 100 - 10P

Using the Demand curve provided above, convert this into an Inverse Demand curve that is, Solving for P.

Develop the equations for both the Total Revenue Curve, TR, and the Marginal Revenue Curve, MR.

If the Monopolist's Marginal Cost, MC is constant at $5.00, find the Profit Maximizing Quantity and Price in this market.

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