A firm's marginal revenue of MR = 200 - 2q, and marginal cost of MC = 50. The profit-maximizing level of output is ? 50 ? 75 ? 200 ? 150
Added by Scott F.
Close
Step 1
Given that MR = 200 - 2q and MC = 50, we can set them equal to each other: 200 - 2q = 50 Simplifying the equation, we get: 150 = 2q Dividing both sides by 2, we find: q = 75 Show more…
Show all steps
Your feedback will help us improve your experience
Felicia Rivera and 101 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Khushbu R.
Andrew N.
A firm knows that its marginal cost for a product is MC = 3x +250, its marginal revenue is MR = 300 + 2x, and its fixed cost is $25. a. What level of production will maximize profit? b. Find the profit function.
Adi S.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Watch the video solution with this free unlock.
EMAIL
PASSWORD