A firm has the following demand function P = 60 – 0.5Q and its total cost are defined by TC = 13 + Q.Find the maximum revenue.

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Mathematics for Economics and Business

1.  A firm has the following average cost AC = 200 + 2Q – 36.

Q

  • Find the stationary point and determine if it is a maximum or a minimum.
  • Find the marginal cost function.

 

2. A firm has the following demand function P = 60 – 0.5Q and its total cost are defined by TC = 13 + Q.

  1. Find the maximum revenue.
  2. Find the production to optimize the profit.
  3. Verify if that the marginal revenue and marginal cost are the same at the profit maximizing production level.
  4. From the point of view of the firm, what decisions criteria have been found relevant in the analysis of production and profit. (10 points)