You are the manager of a firm that sells its product in a competitive market at a price of $60.Your firm's cost function is C = 50 + 3Q².Your firm's maximum profits are: A) 250. B) 400. C) 450. D) 500.

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Quizplus · Accepted Answer

To find maximum profits, set marginal cost (MC) equal to market price (P). MC = dC/dQ = 6Q. Set 6Q = 60, so Q = 10. Profit = Total Revenue - Total Cost = (60*10) - (50 + 3*10^2) = 600 - 350 = 250.

You Are the Manager of a Firm That Sells Its