The following is a demand curve for an oligopoly firm:
AR = P = 200 - Q
where Q is the quantity sold per month of Product A, and P is the price of Product A. The firm's total cost function is:
TC = 5000 + 20Q - 13Q² + 1/3 Q³
a. Determine the quantity sold that will maximize profit.Assume fractional quantities are acceptable.)
b. Indicate the dollar amount of profit for the firm at the above output per month.

Question

Quizplus · Accepted Answer

The Answer of The following is a demand curve for an oligopoly firm: AR = P = 200 - Q where Q is the quantity sold per month of Product A, and P is the price of Product A. The firm's total cost function is: TC = 5000 + 20Q - 13Q² + 1/3 Q³ a. Determine the quantity sold that will maximize profit.Assume fractional quantities are acceptable.) b. Indicate the dollar amount of profit for the firm at the above output per month.

The Following Is a Demand Curve for an Oligopoly Firm