What us the highest profit the firm can earn? TC 21000+0.001q^2 P=10

What us the highest profit the firm can earn? TC 21000+0.001q^2 P=10

 

 

Answer:

for competitive firm P=MC

MC= 0.002q=P=10

or q= 10/0.002= 5000

Revenue= Pq= 10*5000= 50000

cost= 21000+ 0.001*5000^2=46000

profit= 50000-46000=4000

Asked on February 15, 2018 in economics.
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