Consider a market with the following inverse demand function, p = 140 - 3Q and constant marginal cost = 20. 1. Write down the total revenue (TR) function and the marginal revenue (MR) function (in terms of Q). 2. Write down the total cost (TC) function and the marginal cost function. 3. Find the profit maximizing quantity and price. 4. What is the firm’s profit?

Consider a market with the following inverse demand function, p = 140 - 3Q and constant marginal cost = 20. 1. Write down the total revenue (TR) function and the marginal revenue (MR) function (in terms of Q). 2. Write down the total cost (TC) function and the marginal cost function. 3. Find the profit maximizing quantity and price. 4. What is the firm’s profit?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter23: Profit Maximization

Section: Chapter Questions

Problem 11E

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