Explore BrainMass
Share

# Determining Profit Maximizing output level

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

The weekly demand for computers produced by College Computers is given by
Q= 1,000 - P

and the weekly cost of producing computers is
(C)Q= 2,000 + Q^2.

If other firms in the industry sell PCS at \$600 what price and quantity of computers should you produce to maximize your firm's profits?

What long run adjustments should you anticipate? Explain.

https://brainmass.com/economics/price-levels/determine-profit-maximizing-output-level-230335

#### Solution Preview

Solution:

C(Q)=2000+Q^2
Marginal cost=dC(Q)/dQ=2Q

Since there are similar firms in the markets, It cannot have monopoly as product is not differentiable. Firm will behave ...

#### Solution Summary

Solution describes the steps for determining profit maximizing output level for a given firm. It also explains anticipated long run adjustments.

\$2.19