A firm's total cost (TC) in naira is given by $TC = 0.2Q^{2} + 10Q + 50$, where $Q$ is output in units. Its total revenue (TR) is $TR = 40Q - 0.1Q^{2}$. Determine the output level that maximises profit and state the maximum profit.

Question

Accepted Answer

Output = 50 units; Maximum profit = 700

Gce Model Questions Vol1 2021 Economics Question 1

A firm's total cost (TC) in naira is given by \(TC = 0.2Q^{2} + 10Q + 50\), where \(Q\) is output in units. Its total revenue (TR) is \(TR = 40Q - 0.1Q^{2}\). Determine the output level that maximises profit and state the maximum profit.

Answer Options

About This Question

Master the Exam!