A firm's total cost function is $TC = 0.5Q^{2} + 20Q + 150$, where $Q$ is the quantity of output. The market price is constant at £80 per unit. Assuming the firm is a price‑taker, determine the output level that maximises profit and calculate the maximum profit.

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Output = 60 units; Maximum profit = £1,650

Gce Model Questions Vol1 2022 Economics Question 31

A firm's total cost function is \(TC = 0.5Q^{2} + 20Q + 150\), where \(Q\) is the quantity of output. The market price is constant at £80 per unit. Assuming the firm is a price‑taker, determine the output level that maximises profit and calculate the maximum profit.

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