39. The following equations have been developed for a company: Demand curve P = 150 – 5 × QTotal revenue curve TR = 150 × Q – 5 × Q2Marginal revenue curve MR = 150 – 10 × QTotal cost curve TC = Q3 – 10 × Q2 + 73 × Q + 120Average cost curve AC = Q2 – 10 × Q + 73 + 120/Q Marginal cost curve MC = 3 × Q2 – 20 × Q + 73 P: price per unit Q: cost per unitThe profit maximizing output for this firm (in units) is closest to: A. 7. B. 8. C. 11.

QUESTIONS 33 THROUGH 44 RELATE TO ECONOMICS

MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM AFTERNOON 2012

39. The following equations have been developed for a company: Demand curve P = 150 – 5 × QTotal revenue curve TR = 150 × Q – 5 × Q

Marginal revenue curve MR = 150 – 10 × QTotal cost curve TC = Q

– 10 × Q

+ 73 × Q + 120Average cost curve AC = Q

– 10 × Q + 73 + 120/Q Marginal cost curve MC = 3 × Q

– 20 × Q + 73 P: price per unit Q: cost per unitThe profit maximizing output for this firm (in units) is closest to: A. 7. B. 8. C. 11.