A perfectly competitive firms profit function takes the form

A perfectly competitive firm\'s profit function takes the form of Find. the rate at which the firm\'s maximized profit change with respect to the determined price. Find the firm\'s profit-maximizing quantity and profit for

Solution

pi(q;p) = pq-(q^2)/6

dpi(q;p)/dp = q

For max profit

dpi(q;p)/dq = p - q/3 = =

p = q/3

For P = 5, q = 15