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You have the follwoing information for a firm:
TR = 200 Q – Q2 MR = 200 – 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. Prove that your answer to part b represents the profit msximixing output produced.
d. What are maximum profits?
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