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Suppose a Firm's Profit Is Given by the Equation π π\pi

Question 45

Multiple Choice

Suppose a firm's profit is given by the equation π = -200 + 80Q - .2Q2. Which of the following is true?


A) The firm's marginal profit is given by the equation: M π\pi = 80 - .2Q.
B) The firm's profit-maximizing output is Q = 400.
C) The firm's profit-maximizing output is Q = 200.
D) The firm's marginal profit is given by the equation: M π\pi = 80 - 2Q.
E) The firm's profit-maximizing output is Q = 800.

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