- 3

- 0

Thank you

Given a firms profit curve of:

Profit= -3 + 15Q - 1.25Q^2

a) Calculate the output that would maximize the firms's profit.

15-1.25Q^2=0

15=1.25

15/1.25 = 12

Output = 12

b)Calculate the maximum profit:

-3 + 15Q-1.25Q^2

-3 +15 (12) - 1.25 (24)=

57-30=27