Question

I was trying to derive for A from the function: profit=PQ(P,A)-C(Q(A))-A

these are my steps

profit=Pdq/da-Cqdq/da-1

dprofit/dA=P(dq/da)-MC(dq/da)-1=0

(p-MC)change in q/change in A=1

p-mc/p[A/Q *change in q/change in A]=A

A=TR Ea/Ed
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this is what is is suppose to equal after deriving i just wanted to know if my steps were correct, thanks!

Answer 1

The question is very difficult to respond because the symbols are either not defined or not consistent.

For example, Ed is probably elasticity of demand, MC is marginal cost, etc.

However, to get the correct answer, nothing should be left to guess work.