Homework Answers
Maximise profit where MR equals MC.
MR can be find by taking derivative of TR.
TR =P*Q
=(90-Q)*Q
=90Q-Q^2
MR =dTR /dQ
=90-2Q
So, MR =MC
90-2Q=30
90-30=2Q
60=2Q
30=Q.
So quantity will be 30.
Price will be find by putting Q=30 in inverse demand function.
P=90-Q
=90-30
=60.
SO, price will be $60.
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