Download Profit Maximization (Downward

Profit Maximization (With a Downward-Sloping Demand Curve)
Suppose the equation of the demand curve for a firm’s product is P = 300 – 3Q , where P is the
price of the product and Q is the quantity of output produced. The total cost of production is
TC = 2Q3 – 24Q2 + 300Q + 250. Showing work clearly, answer the following questions.
a. What is the total revenue function?
b. What is the profit function?
c. Use the first derivative to determine the profit-maximizing output level.
d. Use the second derivative to verify that you have a maximum.
e. At the profit-maximizing output level, what is total revenue?
f. At the profit-maximizing output level, what is total cost?
g. What is the maximum profit?