(1)A firm which produces a new type of shoes has the following demand and total cost functions
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P = 80-Q 3
TC = 64 + 34.5Q – 70 + 0.5Q
(a)Form the profit function for this firm.
(b)Find the profit maximizing output for the firm.
(c)Determine the total profit/loss the firm could earn by producing the profit maximizing output
(d)At what price would the firm sell its unit of output?
(e)Find the price elasticity of demand at equilibrium and interpret your result. Get Economics homework help today
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