What are the greatest possible profits that this firm can earn when the price is

Question

What are the greatest possible profits that this firm can earn when the price is $12 (per unit)?

I came up with $-175 but the program marked it incorrect. this is how i solved it

P=MC

12=2+2q

10=2q

q=5

then:

TC=200+2(5)+(52)

TC=235

so:

Profit=(P*Q)-TC

=(12*5)-235

=-$175

Did i make a mistake somewhere or is the grading wrong. The system said the answer is -$150. If i made a mistake could you please tell me how to do correctly solve. thanks for your help

Explanation / Answer

This is the case of perfect competition and equilibrium condition for perfect competition is :

P = MC

and Q = 5 and P = 12

TR = 60

MC at the Q =5 is 12

Profit = TR - TVC - TFC

= 60 - 60 -150 ( TVC = MC*Q)

= -150

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