Goolsbee1e_Solutions_Manual_Ch09_App - The Calculus of Prot...

Solution
Solution
1. Find marginal revenue for the firms that face the following demand curves:
a. Q = 1,000 – 5
b. Q = 100 P
–
P
2
P
Q
Q
2
0.4Q
2
– 1
0.5
:
Q
2. Suppose a firm faces demand of Q = 300 – 2 P and has a total cost curve of TC = 75 Q + Q
a. What is the firm’s marginal revenue?
b. What is the firm’s marginal cost?
c. Find the firm’s profit-maximizing quantity where MR = MC
d. Find the firm’s profit-maximizing price and profit.
2
.
.
P
Q
2
:
Q
The Calculus of Profit Maximization
9