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  3. the following equations describe a firm’s d

The following equations describe a firm’s demand, marginal revenue, total cost, & marginal cost: Demand: P =...

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Economics

The following equations describe a firm’s demand,marginal revenue, total cost, & marginal cost:

Demand: P = 1,000 – 10Q

Total Cost: TC = 500 + 10Q + Q^2

Marginal Revenue: MR = 1,000 – 20Q

Marginal Cost: MC = 10 + 2Q

a. What level of output should be produced to maximizeprofits?

b. What is the market price?

c. How much profit will be earned?

d. The firm sells cereal and competes with other firms sellingslightly differentiated cereal products. What type of market isthis firm operating in?

The following equations describe a firm’s total cost andmarginal cost:

Total Cost: TC = 500 + 10Q + Q^2

Marginal Cost: MC = 10 + 2Q

e. If the firm is a price taker and other firms in the industrysell output at a price of $100, what price should the manager ofthis firm put on the product?

f. What level of output should be produced to maximizeprofits?

g. How much profit will be earned?

h. The firm sells orange juice, which is a perfect substitute,at a farmers market. What type of market is this firm operatingin?

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