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You have the follwoing information for a firm:
TR = 200 Q – Q2 (this is Q squared, NOT Q*2)
MR = 200 – 2 Q
TC = 1000 - 8 Q + Q2 (this is Q squared, NOT Q*2)
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 maximizing output produced.
d. What are maximum profits?
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