The following is a demand function that has been estimated for a monopolistically competitive firm.;Q = 320 ? 2P;If the firm?s TVC function is;TVC = 40Q ? 1.5Q2 +1/3 Q3;Total fixed cost = $500;a. How much should the firm produce in order to maximize profit?;b. What is the maximum profit that the firm can generate at the output level(your answer in a)?
Paper#21297 | Written in 18-Jul-2015Price : $22