Question

In a monopolistically competitive market a firm demand is given by the portion q=1500-50p Tc=1500+3q+0.0025q^2 What is the maximum profit?

Answer 1

revenue = pq, so profit is

(1500-q)/50*q - (1500+3q+0.0025q^2)
= -0.0225q^2 + 27q - 1500
which has a maximum of 6600