Economics Two Questions

 

A firm’s total cost and marginal cost functions are: TC = 10 Q2 + 2 Q – 2 and MC = 20 Q + 2. Assume that the market price is 62 and that the marginal revenue (MR) is also 62 at all output levels. If the firm is currently producing 3 unit of output, what are profits for this firm?

a.

Profit is 92

b.

Profit 42

c.

Profit is 186                                                                                                                                        

d.

None of the other choices

 

1. A firm’s total cost and marginal cost functions are: TC = 10 Q2 + 2 Q – 2 and MC = 20 Q + 2. Assume that the market price is 62 and that the marginal revenue (MR) is also 62 at all output levels. What is the profit-maximizing output level?
   
   
   
   
   a.2
   
   b.3
   
   c.4
   
   d.None of the other choices