Write down the equation for profits

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You work at a shop with lots of competitiors, these competitors act as price takers. The market supply and demand curves result ina price of $10 for your product.

SRTC function equals to 845 + 5Q +Q^2/80

1. Write down the equation for profits.

2. Assuming that yoru firm's objective is to maximize profits, what is the profit maximizing output they would choose?

3. What they produce the output found in part 2? Or shut down temporarily?

4. Plot this relationship to show the market demand and market supply (assume to be linear) And show where the profit is.

Reference no: EM131194607

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