Presentation on theme: "At what Q is TR maximized? How do you know this is a maximum"— Presentation transcript:
1At what Q is TR maximized? How do you know this is a maximum TR = 21Q –Q2 TC = 1/3Q3 – 3Q2 + 9Q + 6At what Q is TR maximized?How do you know this is a maximumAt what Q is profit maximized?Prove this is a maximum.What is the maximum profit?
2A) At what Q is profit maximized? B) Prove this is a maximum. TR = 50Q – Q2TC = 100 – 4Q + 2Q2A) At what Q is profit maximized?B) Prove this is a maximum.C) What is the total profit?
3Demand 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?
4Short 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.
5Demand 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?
6Demand 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.