A perfectly competitive firm has a quadratic cost function
$$C(q)= 3+7q+q^2$$
and given price for output is 14.
What is the maximum profit it can make?
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Please also include in your question the approache(s) taken in your attempts at solving the problem. – CardioidAss22 May 26 '19 at 15:12
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Write down profit as function of $q$.
$$\Pi(q) = 14q - (q^2 + 7q +3)$$
Now differentiating w.r.t $q$ and equating to $0$ will give you the profit maximizing output.
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