Question
1. A producer has a total cost function: TC = Q2 + 2Q + 66 The demand function is: Q = 10 - 0.2 P
1. A producer has a total cost function: TC = Q2 + 2Q + 66
The demand function is: Q = 10 - 0.2 P
Question:
a. Determine the average revenue (AR), marginal revenue (MR) and marginal cost (MC) functions.
b. What are the outputs and prices that maximize profits?
c. What is the maximum profit?
Step by Step Solution
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Step: 1
Given tcQ 2 2Q66 then mc2Q2 Given Q1002P Then ...
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Mathematical Applications for the Management Life and Social Sciences
Authors: Ronald J. Harshbarger, James J. Reynolds
11th edition
9781337032247, 9781305465183, 1305108043, 1337032247, 1305465180, 978-1305108042
