Re: JNU ECOM 2011 QUES 91-100

Posted by Arushi :)) on Mar 29, 2014; 5:01pm
URL: http://discussion-forum.276.s1.nabble.com/JNU-ECOM-2011-QUES-91-100-tp7585657p7585692.html

Profit = 90*Q-20x
        = 90*4*x^(1/2)-20x
Now the firm will choose that x , that will maximize profit.
d(profit)/dx= 360/2*x^(1/2)-20=0
=> 180/x^(1/2)=20
=> x^(1/2)=9
=> x = 81
substitute it back into profit equation:
profit= 360*9-20*81
       =3240-1620= 1620