profit-maximizing quantity using the marginal revenue and marginal cost approach

Question

I am given Quantity, TC, and market price. How do I solve this problem?

a. What is the total fixed cost for this firm? Find its profit-maximizing quantity using the marginal revenue and marginal cost approach.

Answer 1

If you post the specific question it would probably be easier to answer, however I'll explain in general terms. Profit=Price*Quantity-TC. Total cost is probably set up something like this TC=3Q+5. In this case the constant of 5 is the fixed cost. To find the marginal cost you have to you have to take the derivative of the TC. In my example the MC=3. Total revenue=Price*quantity. To find the Marginal revenue you must take the derivative of TR. Then set MR=MC and solve for Q. If you want to post the actual questions I'll be happy to help solve specific questions.