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Let the demand facing a firm for its product be expressed by the following functions Q=25-0.5P Where Q=quantity and P=price, and cost function as C=25-2Q+4Q2 Compute a) Profit maximizing output, b) Justify profit maximizing output

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In a long run situation what is economic profit if the profit maximizing point is 5 and the price is 8?

because the Price is Right


What do you mean by maximize profits?

profit maximization is the (short run) process by which a firm determines the price and output level that returns the greatest profit


True or false The most difficult part of determining the profit maximizing price is determining profit at a given level of unit sales?

true


When a perfectly competitive firm is at its profit maximizing level of output you can say that it is?

is producing where price exceeds marginal costs


The price charged by a profit-maximizing monopolist occurs at?

the point where the marginal cost curve intersects the marginal revenue curve


How do you calculate profit maximizing price?

The answer depends on what information you have about profits per units sold, or on the costs and revenues per unit.


How do you find profit maximizing level of output?

The best way to find the profit maximizing level of to calculate it using the profit maximizing formula. To calculate it you need to know margins and how long it takes you to do each task.


How does a monopolistically competitive firm determine its profit-maximizing price?

price = marginal revenue. marginal revenue > average revenue. price > marginal cost. total revenue > marginal co


Why is it impossible for a profit-maximizing monopolist to choose any price and any quantity it wishes?

The monopolist can choose either the price or the quantity, but choosing one determines the other - they come in pairs.


How can one determine the profit maximizing output from a table?

To determine the profit-maximizing output from a table, look for the quantity where the marginal revenue equals the marginal cost. This is the point where the firm maximizes its profit.


What is the profit maximizing point on the graph for this particular business model?

The profit maximizing point on the graph for this business model is where the marginal revenue equals the marginal cost.


What are the essential elements of the basic competitive model?

rational, self interested consumers rational, profit maximizing firms competitive markets with price taking behavior