Question

TR=100q-2q²
TC=50+40q
Find both MC and MR
Determine the profit maximizing level ??

Answer 1

$MR = TR'(Q) = 100 - 4q,$

$MC = TC'(Q) = 40.$

MR = MC,

100 - 4q = 40,

q = 15 units is profit maximizing level of output.