How to minimize total cost which maximizes short-run profits

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Jones Company operates within a monopolistically competitive industry. The estimated demand for its products is given by the following inverse demand function

P = 1760 - 12Q

It finance department has estimated its total cost function as

TC = 24,000 + 5 Q - 15 Q2 + 0.333 Q3

a. What is the level of output that maximizes short run profits? To minimize total cost which maximizes short-run profits.

dTC/dQ = 5 - 30Q + 0.999Q^2

Q = 29.86 or 30 units

b. What is the profit maximizing price?

P = 1760 - 12x30 = $1,400

c. What are total profits?

Reference no: EM13201669

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