Short-run profit-maximizing output


Suppose that Mensa Inc. is a representative firm operating in a perfectly competitive industry. Mensa's total cost of production, TC, is given by the equation TC = 5,000 +5q2, where q is Mensa's output. Based on this equation, Mensa's marginal cost is 10q. If the output price is $100, what is Mensa's short-run profit-maximizing output? How much profit does Mensa make at that output?

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Microeconomics: Short-run profit-maximizing output
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