Answer to Question #44278 in Microeconomics for Kate
a. Write an equation for the total revenue (TR) function in terms of Q.
b. Specify the marginal revenue function.
c. Write an equation for the total cost (TC) function in terms of Q.
d. Specify the marginal cost function.
Write an equation for total profits (π) in terms of Q. At what level of output (Q) are total profits maximised? What price will be charged? What are total profits at this output level?
Check your answer in Part (e) by equating the marginal revenue and marginal cost functions, determined in Parts (b) and (d), and solving for Q.
g. What model of market pricing behavior has been assumed in this problem? Explain.
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