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b) Murume has a miraa farm in Meru county having the following functions: Q=0.6P - 40 TFC = 175 AVC = 6 + 2Q

 

b) Murume has a miraa farm in Meru county having the following functions: Q=0.6P - 40 TFC = 175 AVC = 6 + 2Q Find Murume's profit maximizing level of output. Conduct the Second Derivative Test (7 marks)

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Q06P40 TFC 175 AVC 628 TC TVC TFC AVC 62Q Q vc 6Q2Q VC Q 40 016 P P 59 20023 TR ... blur-text-image

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