Question
1)A company's cost function is C(q) = 2320 + 3.8q + 0.004q^2 and their revenue function isR(q) = 12.2q 0.002q^2. What is the production level
1)A company's cost function is C(q) = 2320 + 3.8q + 0.004q^2 and their revenue function isR(q) = 12.2q 0.002q^2.
What is the production level that maxizes profit?
2) At what unit does this cost function start increasing? (Hint: It is not 80,000) C(q) = 0.001q^3 0.75q^2 + 456q + 80,000
3) Fabric has a cost function of C(x)=1800+12x-0.1x^2+0.0005x^3 and the company charches p(x)=30-0.00021x dollars per yard. The estimated maximum production level is 202 but what is the approximate maximum production level?
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Making Hard Decisions with decision tools
Authors: Robert Clemen, Terence Reilly
3rd edition
538797576, 978-0538797573
