Answer to Question #224491 in Microeconomics for Vickie

Question

Given that the price in a competitive industry is 100 the firm's total cost equation is given as TC=50+20q+q2
Determine the firm's stock total re




Given that the price in a competitive industry is 100 the firm's total equation is given as TC=50+20q+q2
Determine the firm's total stock revenue
The profit equation, the quantity which maximizes the profit , profit that maximizes the quantity what is the total cost the total revenue and the profit

Answer 1

$TC=50+20q+q^2$

$P = 100$

$Profit = Revenue - Total \space cost$

$Profit = 100q - (50+20q+q^2)$

$Revenue = Price\times Quantity$

$Revenue = 100\times q$

$MC = 20 +2q$

At profit max.

$Price = MC$

$100 = 20 +2q$

$80 = 2q\\ q = 40$

$Revenue = 100\times40$

$Revenue = 4000$

Profit max. quantity "40" and revenue "4000"