Suppose a firm's profit is given by the equation π = -200 + 80Q - .2Q². Which of the following is true? A) The firm's marginal profit is given by the equation: M$\pi$= 80 - .2Q. B) The firm's profit-maximizing output is Q = 400. C) The firm's profit-maximizing output is Q = 200. D) The firm's marginal profit is given by the equation: M$\pi$= 80 - 2Q. E) The firm's profit-maximizing output is Q = 800.

Question

Quizplus · Accepted Answer

The firm's profit-maximizing output is found by setting the derivative of the profit function (marginal profit) to zero: dπ/dQ = 80 - 0.4Q = 0, solving gives Q = 200.

Suppose a Firm's Profit Is Given by the Equation π π\piπ

Suppose a Firm's Profit Is Given by the Equation π $\pi$