February 25, 2017

Homework Help: economics-micro

Posted by mick on Tuesday, October 2, 2007 at 6:48am.

Suppose that a firm is the only domestic producer of a commodity and that
there are no imports of the good. The firm’s total cost and demand curves are
given by the following two equations:

TC = 6Q + ·05Q2 : Q = 360 - 20P

q) The government wishes to impose a maximum price of $14 on the
commodity. Assuming that the firm is a profit maximiser, what
quantity will it produce and what will be the level of its profits.

p.s. originally, p=15 and q=60

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