What is the optimal level of output

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Your company has estimated its total cost to be TC=7000+0.05Q+0.0015Q^2 so its marginal cost is thus MC=0.05+0.003Q where Q is the quantity of units produced and TC is in dollars. Since your market is relatively competitive, your company is able to sell its output for $13.55 each, which thus yields MR=13.55 and TR=13.55Q

1: What is the optimal level of output for your company to produce/sell?

2: What is the marginal revenue from the last unit sold?

3: What is the total revenue from selling the optimal number of units?

4: What is the total cost from selling the optimal number of units?

5: What is the profit (net benefit/net revenue/etc.) from selling the optimal number of units?

Reference no: EM132227750

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