Question #283766

Supose the perfectly competitve price is given as $46 and the total cost of the firm is given by TC=14X+2X^2, find



A) the prifit maximizing level of output for the firm



B) the profit of the firm



And show its graphical illustrations




1
Expert's answer
2022-01-04T11:12:24-0500

a) The profit maximizing level of output of the firm would be at the point where;

P=MCP=MC

MC=dTC/dxMC= dTC/dx

MC=14+4xMC=14+4x

P=46P=46

46=14+4x46=14+4x

32=4x32=4x

x=8x=8

b) Profit=TRTCProfit=TR-TC

TR=P.QTR=P.Q

TR=468=368TR=46*8 = 368

TC=14(8)+2(88)=112+128=240TC=14(8)+2(8*8) = 112+128 = 240

Profit=368240=128Profit =368 -240 =128

Therefore Profit is $128.00


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