Transcript TR = 21Q –Q2 TC = 1/3Q3 – 3Q2 + 9Q + 6

TR = 21Q –Q2
TC = 1/3Q3 – 3Q2 + 9Q + 6
a. At what Q is TR maximized?
b. How do you know this is a
maximum
c. At what Q is profit maximized?
d. Prove this is a maximum.
e. What is the maximum profit?
TR = 50Q – Q2
TC = 100 – 4Q + 2Q2
• A) At what Q is profit maximized?
• B) Prove this is a maximum.
• C) What is the total profit?
Demand curve is Q = 220 – P
TC = 1000 + 80Q – 3Q2 + 1/3Q3
• A) Write the equation for Total Revenue.
• B) Determine the output level and price that
will maximize profit/minimize loss.
• C) What is the profit/loss at this point?
Short run Total Cost
STC = 4850 + 40Q – 1.5Q2 + 0.04Q3
• A) What is the dollar value of average fixed
cost at an output of 25 units?
• B) At what level will marginal cost be
minimized?
• C) Prove this is a minimum.
• D) At what level will AVC be minimized?
• E) Prove this is a minimum.
Demand function Q = 350 – 0.25P
STC = 20000 + 200Q – 9Q2 + 1/3Q3
• Determine the profit maximizing quantity sold
and the price.
• Prove this is a maximum.
• What is the level of profit?
Demand Q = 75 – 0.5P
STC = 500 + 30Q – 3Q2 + 1/3Q3
• Find the MR equation for the firm.
• Solve for the profit maximizing quantity and
price.