What is the level of output q that maximizes profit

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Reference no: EM13179725

Assume that a firm acts as a price taker. Regardless of the demand,it sells each unit of its product for $5.

a) Assume that the firm's marginal cost is given by MC = 0.2q + 3. What is the level of output q that maximizes profit?

b) Assume the total cost is given by TC = 0.1q^2 + 3q + 10. Calculate the firm's profit.

c) Graph these results and label firm's supply curve.

Reference no: EM13179725

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