A firm’s total cost and marginal cost functions are: TC = 10
Q2 + 2Q-2 ; MC = 20Q+2
Assume that the market price is 42 and that the marginal revenue
(MR) is also 42 (It is constant at all output levels)
1. The firm is currently prodccuing 1 unites of output. what are
profits or losses for this firm?
2. Are they maximizing profits?Why?
3. If you answer to part 2 was No, what would be maximum
Please show necessary calculations.