Deduce first-order condition for firms profit maximization

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Reference no: EM13391962

Consider a broking firm that supplies consulting services. The corresponding demand relation and cost functions are and , respectively.

(a) Derive the first-order condition for the firms profit maximization. Determine the profit maximizing level of Q.

(b) Verify that, at the point of maximum profit that the second-order sufficient condition holds.

(c) Check that marginal revenue is equal to marginal cost at the profit-maximizing level of output determined in (b).

Reference no: EM13391962

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