Answer to Question #76744 in Macroeconomics for maame afua akuoko
The profit-maximising output of the firm is at MR = MC = P, then:
TR' = TC',
100 = 2 + 0.4Q,
Q = 245 units,
P = $100.
The profit is:
TP = TR - TC = 100*245 - (5000 + 2*245 + 0.2*245^2) = $7005.
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