Determine the new profit maximizing output and profits

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Reference no: EM13153100

Given the market demand and supply schedules in a perfectly competitive market:

Q(d) = 50 - 4P and Q(s) = -6 + 3P and given the total cost function for the firm:

C= 20 + 12Q - 4Q^2 + .5Q^3

a) Determine the profit maximizing output and amount of profits for the firm.

b) Check second order conditions.

c) If the market demand increases to Q(d) = 57 - 4P, determine the new profit maximizing output and profits.

d) Check second order conditions.

e) Explain whether this model represent a short run or long run time horizon.

Reference no: EM13153100

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