A firm in an oligopolistic industry has the following demand and total cost equations:
P = 800 – 20Q and TC = 500 + 100Q + 10Q2
Calculate the following show your work:
a. price and quantity at which revenue is maximized, using the total revenue function with first order condition and verifying your choice of Q resulting at a maximum with the second order condition
b. maximum revenue
c. price and quantity that maximizes revenue at which profit will be at least $3,000