14. A shop which sells T - shirts has a demand function and a total cost function given by the equations: P = 240 – 10 Q and TC = 120 + 8 Q. a) Write down the equations for TR and Profit. b) Write down equation for MR and MC. c) Calculate the number of T- shirts which must be sold to maximize profit and Revenue.

14. A shop which sells T - shirts has a demand function and a total cost function given by the equations: P = 240 – 10 Q and TC = 120 + 8 Q. a) Write down the equations for TR and Profit. b) Write down equation for MR and MC. c) Calculate the number of T- shirts which must be sold to maximize profit and Revenue.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter23: Profit Maximization

Section: Chapter Questions

Problem 1E

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