What is the profit when quantity produced is optimal

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A firm faces the demand function Qd = 60− (½)P and the cost function C = 11Q2 +5. (a) What is the optimal quantity that a price-taking (and profit maximizing) firm should supply? (b) What is the profit when quantity produced is optimal? (c) Construct a graph showing the demand curve, the MR curve, the MC curve, and the AC curve. Show the equilibrium point (where Q is optimal); indicate the point’s coordinates (i.e. P* and Q*). Show in the graph the area that corresponds to profit.

Reference no: EM131082131

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