What is the profit-maximizing output level

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1. A firm's total cost and marginal cost functions are: TC = 10 Q2 + 2 Q - 2 and MC = 20 Q + 2. Assume that the market price is 62 and that the marginal revenue (MR) is also 62 at all output levels. If the firm is currently producing 3 unit of output, what are profits for this firm?

a. Profit is 92

b. Profit 42

c. Profit is 186

d. None of the other choices

2. A firm's total cost and marginal cost functions are: TC = 10 Q2 + 2 Q - 2 and MC = 20 Q + 2. Assume that the market price is 62 and that the marginal revenue (MR) is also 62 at all output levels. What is the profit-maximizing output level?

a. 2

b. 3

c. 4

d. None of the other choices

Reference no: EM133186229

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