A manufacturing firm faces the market demand curve $P = 120 - 0.5Q$ where $P$ is the price per unit (in naira) and $Q$ is output. Its total cost function is $TC = 0.5Q^{3} - 6Q^{2} + 30Q + 200$. Determine the output level that maximizes profit and calculate the maximum profit.

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Accepted Answer

Output = 12 units; Maximum profit = ₦808

Neco 2023 Economics Question 41

A manufacturing firm faces the market demand curve \(P = 120 - 0.5Q\) where \(P\) is the price per unit (in naira) and \(Q\) is output. Its total cost function is \(TC = 0.5Q^{3} - 6Q^{2} + 30Q + 200\). Determine the output level that maximizes profit and calculate the maximum profit.

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