Answer to Question #133106 in Economics for Abdulsalam

Question

determine the best level of output if a firm operates in a perfectly competitive industry where p=#8 and TC=Q3-5Q2+10Q+4

Answer 1

The best level of output is at MC = P.

$MC = TC'(Q) = 3Q^2 - 10Q + 10,$

$3Q^2 - 10Q + 10 = 8,$

$3Q^2 - 10Q + 2 = 0,$

$Q1 = (10 + 8.72)/6 = 3.12,$

$Q2 = (10 - 8.72)/6 = 0.21.$