if a competitive firm has a total cost function of C=450+15q+2q^2 q=25 and price=115 how do i find the profit?

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if a competitive firm has a total cost function of C=450+15q+2q^2 q=25 and price=115 how do i find the profit?

2006-10-31 10:01:08 · 2 answers · asked by mcnult345 1 in Social Science ➔ Economics

2 answers

Profit = total price - total cost
so start by working out Total Cost

Total Cost = 450 + 15q + 2q^2, where q=25
= 450 + 15*25 + 2*(25^2)
= 450 + 15* 25 + 2*625
= 450 + 375 + 1250
= 2075

Total price = unit price * quantity
= 115 * 25
= 2875

Therefore,

Profit = 2875 - 2075 = 800

2006-10-31 11:38:43 · answer #1 · answered by eco101 3 · 0⤊ 0⤋

calculte the cost by puting 25 in for q, then profit =(price-cost)q

2006-10-31 18:28:32 · answer #2 · answered by meg 7 · 0⤊ 0⤋