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6 Aug 2019
NUMBER 3.
You have the follwoing information for a firm:
TR = 200 Q â Q2 MR = 200 â 2 Q
TC = 1000 - 8 Q + Q2 MC = - 8 + 2 Q
a. If the firm produces 60 units of output, what are profits or losses for this firm.
b. Is the firm maximizing profits producing Q = 60? If not, what is the profit maximizing
level of output produced?
c. What are maximum profits?
NUMBER 4.
A firm is currently producing 80 units of output. At this level of output produced, P = 150 and ATC = 120. Also asume that MC = 130 and MR is constant at all output levels and equal to 150.
a. Is this firm making profits? If so, what are these profits?
b. Is this firm maximizing profits? If not, what would you recommend this firm do to
maximize profits? Why?
NUMBER 3.
You have the follwoing information for a firm:
TR = 200 Q â Q2 MR = 200 â 2 Q
TC = 1000 - 8 Q + Q2 MC = - 8 + 2 Q
a. If the firm produces 60 units of output, what are profits or losses for this firm.
b. Is the firm maximizing profits producing Q = 60? If not, what is the profit maximizing
level of output produced?
c. What are maximum profits?
NUMBER 4.
A firm is currently producing 80 units of output. At this level of output produced, P = 150 and ATC = 120. Also asume that MC = 130 and MR is constant at all output levels and equal to 150.
a. Is this firm making profits? If so, what are these profits?
b. Is this firm maximizing profits? If not, what would you recommend this firm do to
maximize profits? Why?
Trinidad TremblayLv2
6 Aug 2019
