If a monopoly's demand is p = 200 - 6q and marginal cost mc = 20, what is the firm's profit maximizing quantity to be produced? keep your answer with two decimals.

Respuesta :

The firm's profit maximizing quantity to be produced is 15

P= 200–6Q

TR= 200Q—6[tex]Q^{2}[/tex]

MR = 200–12Q

MC = 20.

In equilibrium MR =MC

200–12Q=20.

Q= 15.

P= 110.

Profit maximising output = 15

What are the benefits of Marginal cost ?

  • When it is not economically feasible to create more commodities, the marginal cost must also be taken into account.
  • When marginal cost exceeds marginal revenue, a company can no longer profit from producing that extra unit because it will cost more to do so than it will earn.
  • A corporation can concentrate efforts on areas where there is the greatest difference by knowing its marginal cost and marginal income for various product lines.
  • Indicators of how a product's price or value changes include both the marginal benefit and marginal cost. The producer is impacted by marginal cost, whereas the customer is impacted by marginal benefit.

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