Answer to Question #68085 in Microeconomics for Sharwan
A firm's production level reaches its optimum and hence maximizes profit when the firm produces where marginal revenue equals marginal costs, i.e. MR=MC (1)
In a competitive market any particular firm is a price-taker and, therefore, MR=P and (1) becomes MC=P.
Calculate marginal cost:
MC = dTC / dQ
MC = d(200+5Q+2Q^2) / dQ
MC = 5+4Q
MC = P
5 + 4Q = P
Q = (P - 5) / 4
where P is the price of a physical unit of the product.
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