Hello all. I am new to this and am stsruggling with some Business problems dealing with marginal reveune and marginal cost.
The problem says "Your firm faces a demand curve for jointroints of P=15. Your cost function is C=36.2+3Q+.02Q^2.
I am thinking I need to take the derivative of the cost function but I am not exactly sure why. I came up with this as my derivative: C=36.2+6Q+.06Q^2 and P=15.
The problem asks for the marginal revenue, the marginal cost, should the firm stay in business long-term and what type of competition is this firm involved in? I am totally confused here as how I would obtain all this information from what I am given. If anyone can help me please do.
Thanks so much
The problem says "Your firm faces a demand curve for jointroints of P=15. Your cost function is C=36.2+3Q+.02Q^2.
I am thinking I need to take the derivative of the cost function but I am not exactly sure why. I came up with this as my derivative: C=36.2+6Q+.06Q^2 and P=15.
The problem asks for the marginal revenue, the marginal cost, should the firm stay in business long-term and what type of competition is this firm involved in? I am totally confused here as how I would obtain all this information from what I am given. If anyone can help me please do.
Thanks so much