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A Firm Has the Following Total Revenue and Total Cost

Question 61

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A firm has the following total revenue and total cost functions:
TR = 86Q - .5Q2 A firm has the following total revenue and total cost functions: TR = 86Q - .5Q<sup>2</sup>        a. At what level of output does the firm maximize total revenue? b. At what level of output does the firm maximize total profit? c. How much is the firm's total profit at its maximum?
A firm has the following total revenue and total cost functions: TR = 86Q - .5Q<sup>2</sup>        a. At what level of output does the firm maximize total revenue? b. At what level of output does the firm maximize total profit? c. How much is the firm's total profit at its maximum?
a. At what level of output does the firm maximize total revenue?
b. At what level of output does the firm maximize total profit?
c. How much is the firm's total profit at its maximum?

Correct Answer:

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a. Total revenue maximization occurs whe...

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