At what Q is TR maximized? How do you know this is a maximum

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Presentation transcript:

At what Q is TR maximized? How do you know this is a maximum TR = 21Q –Q2 TC = 1/3Q3 – 3Q2 + 9Q + 6 At what Q is TR maximized? How do you know this is a maximum At what Q is profit maximized? Prove this is a maximum. What is the maximum profit?

A) At what Q is profit maximized? B) Prove this is a maximum. TR = 50Q – Q2 TC = 100 – 4Q + 2Q2 A) At what Q is profit maximized? B) Prove this is a maximum. C) What is the total profit?

Demand curve is Q = 220 – P TC = 1000 + 80Q – 3Q2 + 1/3Q3 A) Write the equation for Total Revenue. B) Determine the output level and price that will maximize profit/minimize loss. C) What is the profit/loss at this point?

Short run Total Cost STC = 4850 + 40Q – 1.5Q2 + 0.04Q3 A) What is the dollar value of average fixed cost at an output of 25 units? B) At what level will marginal cost be minimized? C) Prove this is a minimum. D) At what level will AVC be minimized? E) Prove this is a minimum.

Demand function Q = 350 – 0.25P STC = 20000 + 200Q – 9Q2 + 1/3Q3 Determine the profit maximizing quantity sold and the price. Prove this is a maximum. What is the level of profit?

Demand Q = 75 – 0.5P STC = 500 + 30Q – 3Q2 + 1/3Q3 Find the MR equation for the firm. Solve for the profit maximizing quantity and price.