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    Calculating maximum profit made by a coal producer

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    A coal producer has the following total cost function:

    TC=$187,500+$5Q+$0.0003Q^2

    where Q is tons of coal produced per month. Calculate the firm's maximum profit if coal price is stable at $20/ton.

    © BrainMass Inc. brainmass.com October 10, 2019, 1:29 am ad1c9bdddf
    https://brainmass.com/economics/output-and-costs/calculating-maximum-profit-made-by-a-coal-producer-336865

    Solution Preview

    Solution:

    TC=187500+5Q+0.0003Q^2
    Marginal Cost=MC=d(TC)/dQ=5+0.0006Q

    Since price is stable at $20/ton,
    Marginal Revenue (MR)=Price=$20

    A ...

    Solution Summary

    Solution depicts the steps to calculate maximum profit made by a coal producer in the given case.

    $2.19