A firm faces the demand curve P=80 - Q. What is the output level that maximizes...

A firm faces the demand curve P=80 - Q. What is the output level that maximizes
total revenue? Its total cost curve is given by C = 50 + 0.2Q² . Set up the profit function
π=f (Q) and find the output level that will maximize its profit.

Expert Solution

Since

Total revenue=price x quantity

For maximizing revenue we need to diiferentiatie it and make it equal to zero.

Rahul Sunny answered 2 years ago

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