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Q. Suppose a firm's inverse demand curve is given by P = 120 - .5Q (Illustrate what does this mean? Is P, price also Q, quantity?) also it's cost equation is C = 420 +60Q +Q squared (Illustrate what does this mean?)
a. find the firm's optimal quantity, price also profit (1) by using the profit also marginal profit equations also (2) by setting MR equal to MC (I understand the concept of marginal costs also incomes, just Do not know Explain how to solve for it? I really Do not understand Calculus).
b. Suppose instead which the firm can sell any also all of its output at the fixed market price P = 120. Find the firm's optimal output.
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