Question
A car manufacturer company faces a demand schedule: p = -5q 2 + 180 And a total cost schedule: TC = -4q 3 - 183q
A car manufacturer company faces a demand schedule: p = -5q2 + 180
And a total cost schedule: TC = -4q3 - 183q + 214
Please find the following:
a- What output level (if any) will maximize the profits?
b- What output level (if any) will minimize the profits?
c- What is the logic behind using the differential calculus of different orders to solve this problem? Considering this problem, what does each of the 1st and 2nd order differential lead you for?
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International Finance Transactions Policy And Regulation
Authors: Hal S. Scott
11th Edition
1587787083, 9781587787089
