Suppose a firm's inverse demand curve is given by P = 120 - .5Q (what does this mean? Is P, price and Q, quantity?) and it's cost equation is C = 420 +60Q +Qsquared (what does this mean?)
a. find the firm's optimal quantity, price, and profit (1) by using the profit and marginal profit equations and (2) by setting MR equal to MC (I understand the concept of marginal costs and revenues, just don't know how to solve for it? I really don't understand Calculus).
b. Suppose instead that the firm can sell any and all of its output at the fixed market price P = 120. Find the firm's optimal output.