Question #274273

MC = 10-2Q+2Q2



P = 8



Find the output and profit.

1
Expert's answer
2021-12-03T12:57:44-0500

With regard to the question, the equation representing the marginal cost MCMC ought to represent the total cost TC.TC.


Therefore


TC=102Q+2Q2TC = 10-2Q+2Q^2


at optimal profit the marginal cost equals marginal revenue equal market price

MC=MR=MPMC = MR =MP


MC=dTCdQ=2+4Q=8MC = \frac{dTC}{dQ} = -2+4Q = 8


4Q=104Q = 10


output is


Q=52or2.5Q = \frac{5}{2} or 2.5


TC=102(52)+2(52)2TC = 10-2(\frac{5}{2})+2(\frac{5}{2})^2


TC=17.5TC = 17.5


Total Revenues = Quantity * price


TR=528=20TR = \frac{5}{2} * 8 =20


Profit = TR -TC


Profit =2017.5=2.5= 20 - 17.5 = 2.5





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