Question
Mega Tyres Ltd is the sole producers and suppliers of tyres in a certain country for which the market demand function is: Q = 7,500
Mega Tyres Ltd is the sole producers and suppliers of tyres in a certain country for which the market demand function is:
Q = 7,500 – 50P
Where the price, P, is in US$ per tyre
Mega Tyre Ltd cost function is: C = 320 -3.5Q + 0.3Q2
Currently Mega Tyre Ltd produces at the point at which it maximizes revenue; determine the output level and market price.
Determine how much more profit Mega Tyre would have made if it maximizes profit instead of revenue.
Determine the output level at which average cost is a minimum.
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W TR P Q Q7500SOP 50p7500Q 50 50 50 P 15019 50 TR15019 Q ...
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Electric Machinery
Authors: Charles Kingsley, Jr, Stephen D. Umans
6th Edition
71230106, 9780073660097, 73660094, 978-0071230100
