Kutay D.

asked • 04/06/21

I need help with math for socialsciences

Firm’s total cost function is of the form of TC=2Q + 14 (i.e., a firm’s fixed costs are 14 and the variable costs are 2 per unit). The corresponding profit function is of the form 𝜋 = AQ2 + 𝛽Q + F . The firm makes a loss of 6 when Q=1 and a profit of 4 when Q=6. a)

(10 p.) Find A, 𝛽 and F.

b) (10 p.) Find the break-even points and hence find the maximum profit.

c) (10 p.) Find an expression for total revenue and deduce the demand function.

2 Answers By Expert Tutors

By:

Raymond B. answered • 04/06/21

Tutor
5 (1)

Math, microeconomics or criminal justice

Lenny D.

tutor
You screwed up with Q=1 Profit = -6 not Q=4. . The profit function is parabolic with apex at 9/2 and zeros at 2 and 7. Stay away from Giffen Goods
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04/07/21

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