Purchase Solution

Help with P=MR=MC

Not what you're looking for?

Ask Custom Question

In a perfectly competitive firm, with the current price of a product being $42.00, and a marginal cost function of MC=.006Q.

How many cases would the firm have to produce in order to maximize profits?

Purchase this Solution
Solution Summary

The expert examines the current price of a product being $42/00 and a marginal cost functions of MC.

Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
Recent Feedback
  • "Your explanation to the answers were very helpful."
  • "What does 1 and 0 means in the repair column?"
  • "Went through all of the formulas, excellent work! This really helped me!"
  • "try others as well please"
  • "Thank you, this helped a lot. I was not sure how to plug in those numbers to a formula. This was a great help. Now I have to figure out how to explain cost of capital is used in net present value analysis, and how cost of capital is used in net present value analysis. This stuff gets confusing."
Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

View More Free Quizzes
Related BrainMass Solutions

  • Profit maximization with given demand and cost schedule

    MR MC TR TC Profit ... a) For profit maximization, set the prices where MC=MR Now: Demand equation Q=200-5P Write the equation for P, we get P=(200-Q)/5=40-0.2Q Total revenue TR = P*Q=(40-0.2Q)*Q Marginal Revenue MR=dTR/dQ = 40-2*0.2Q=40-0.4Q

  • Help with profit-maximizing quantity and price

    .: MR = dTR / dQ = 500 - .1 Q MC = dTC / dQ = 10 + .1 Q We know that the first order condition is MR = MC for profit maximization problem.

  • Appalachian Coal Mining Case: Pollution Reduction

    In this case, MC = MR: 40P = 1,000 - 10P or 50P = 1000 P = 20 Therefore, 20 units of pollution reduction should be undertaken.

  • profit maximization of a monopolist

    we have P=375-0.5Q Total revenue(TR) = P*Q=375Q-0.5Q^2 MR=dTR/dQ=375-Q Equate this to MC we get 375-Q=20 Q=355 and P=197.5 Hope this will help.

  • Follow-Up Question Regarding Solving for Price and Quantity

    Q to get MR MR=dTR/dQ = 800 - 10Q----------(2) MC = 15Q Equate MC and MR, we get Q = 32 Put this in equation for P to calculate P, P=640 The above response was very helpful, however I am still having trouble figuring out the precise method

  • Detailed Optimization Calculations

    454076 Optimization: output, marginal cost, average cost, price Please help with the following problem.

  • Maximizing your profits

    Marginal Cost (MC) = 4Q Yearly demand for computers is: Q = 1,000 - P, where 'P' represents the selling price of a computer system. Marginal Revenue (MR) = 1000 - 2Q 1) How many PC's should you produce to maximize profits?

  • total revenue maximization

    a) Profits maximize at MR=MC TC== 22,000 + 24Q - 4Q(squared) + 1/3 Q(to the third power) Take first derivative w.r.t Q to calculate MC MC=24-8Q+Q^2 Now P=1624-4Q Total Revenue (TR)=P*Q = 1624Q-4Q^2 Take first derivative w.r.t Q to calculate MR

  • income elastic

    a) For optimum price, the condition is MR=MC MC=$15 For MR, first rewrite the equation Q=75*P^-2*I^-2 for P.

  • Determination of price

    I came up with: MR=MC 28-0.0016Q=0.0012Q Q=10,000 - therefore, there are 10,000 cable subscribers if Clear Vision is allowed to operate completely unregulated b.

View More Related Solutions