QUESTION 2 (a) Imagine you have started a new business and the demand and cost equations are given as follows: P=120-0.5Q C=420+60Q+Q² Find your firm's optimal quantity, price and profit. [You may assume the firm is a profit maximizing firm] (i) (ii) Supposing the firm finds that it can actually sell as much as it wants of this product at a Price=120. Find the firms optimal output.

QUESTION 2 (a) Imagine you have started a new business and the demand and cost equations are given as follows: P=120-0.5Q C=420+60Q+Q² Find your firm's optimal quantity, price and profit. [You may assume the firm is a profit maximizing firm] (i) (ii) Supposing the firm finds that it can actually sell as much as it wants of this product at a Price=120. Find the firms optimal output.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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