SOLUTION: A perfectly competitve firm has total revenue and total cost curves given by: TR = 100q TC = 5000+2q+0.2Q^2 Find the profit-maximizing output

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Question 195445: A perfectly competitve firm has total revenue and total cost curves given by:
TR = 100q
TC = 5000+2q+0.2Q^2
Find the profit-maximizing output
Answer by vleith(2983) About Me  (Show Source):
You can put this solution on YOUR website!
Find the maximum of the difference.
What is the maximum of TR - TC?
Profit+=+TR+-+TC
Profit+=+100q+-+%285000%2B2q%2B0.2q%5E2%29
Profit+=+-0.2q%5E2+%2B+98q+-+5000
Take the derivative and set to 0
0+=+-0.4q+%2B+98
-98%2F%28-0.4%29+=+q
245+=+q
or plot -0.2q^2 + 98q - 5000 using your calc and find the max