A firm has the following total and cost functions:
TR=20Q−4Q^2
TC=16−Q^2,
where Q is the number of unites produced and sold (in thousands). How many units should be produced to maximise the profit?
a.3,3333,333 units.
b.1,7141,714 units.
c.1,3331,333 units.
d.3 3333 333 units.
Profit = TR - TC = 20Q - 4Q2 - (16 - Q2) = 20Q - 4Q2 - 16+ Q2 = 20Q-16- 3Q2
Profit has maximum, then
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