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    Compute the firm's profit, Derive an expression for marginal

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    Ï?=-10-48Q+15Q^2-Q^3

    a. Compute the firm's profit for the following levels of output:
    Q=2,8, and 14.

    b. Derive an expression for marginal profit. Compute marginal profit at Q=2,8, and 14. Confirm that profit is maximized at Q=8. (Why is profit not mazimized at Q=2?)

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    Solution Preview

    Suppose a firm assesses its profit function as
    P =-10-48Q+15Q^2-Q^3

    a. Compute the firm's profit for the following levels of output:
    Q=2,8, and 14.

    b. Derive an expression for marginal profit. Compute marginal profit at Q=2,8, and 14. Confirm that profit is ...

    Solution Summary

    Firm's profit for the given levels of output calculated, Expression for marginal profit dervied and marginal profit calculated.

    $2.19