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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. The total cost curve is TC = 24000 + 5Q - 15Q2 + 0.333Q3

a. What is the level of output that maximizes short-run profits? 

b. What is the profit-maximizing price?

C.  What are the total profits?

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Yusra Anees
Yusra AneesLv10
28 Sep 2019

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If a representative firm with the long-run total cost given by TC = 50+2q+2q^2 operates in a competitive industry where the short-run market demand and supply curves are given by Qd = 1,410 - 40P and Qs = -390 +20P, its long-run profit-maximizing level of output is:

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1. Determine the profit-maximizing price and quantity.

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P = $4,500 - $1Q (Demand Curve)

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