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Assume that B = -Q 2 + 4,500Q and C= 2Q 2 are the benefits and costs of increasing the units of X-brand energy drink
Assume that B = -Q2 + 4,500Q and C= 2Q2 are the benefits and costs of increasing the units of X-brand energy drink (in a 500 ml bottle).
- What is the profit function of X-brand energy drink production? (2 points)
- What is the profit-maximizing value of Q? Solve the problem using a tabular solution, showing theProfit, MB, MC and MNB values; assume Q varies by 50 units (in 500 ml bottle). Highlight the profit maximizing level.
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Essentials of Economics
Authors: Bradley Schiller, Karen Gebhardt
10th edition
125923570X, 978-1259235702
