Lets assume youve already completed the input optimization


Let's assume you've already completed the input optimization and found your company's cost function as follows: C(Y)=Y^2 + 3Y

a) Write down the firm's profit function

b) Write down the first order condition for maximization and solve for Y* = f(P)

c) Suppose that P=$9. Find Y* and show that at this level of output, marginal revenue is equal to marginal cost.

d) Calculate the firms profit at Y* and P=$9.

e) Repeat c. and d. with P=$15

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Business Economics: Lets assume youve already completed the input optimization
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