Question

Please assist, Thank you

A firm has the following revenue and cost functions:

 

           TR      =         120Q – 2Q²

           TC      =         200 +60 Q + Q²

 

Determine the level of output at which the firm maximizes its total profit

Answer 1

$TP=TR-TC=\\-3Q^2+60Q-200,$

$TP'=-6Q+60,$

$TP'=0,$

$Q=10,$

$TP=100.$