Question
Suppose that for a product in a competitive market, the demand function is p = 800 3 x and the supply function is p =
Suppose that for a product in a competitive market, the demand function is
p = 800 3x
and the supply function is
p = 200 + 3x,
where x is the number of units and p is in dollars. A firm's average cost function for this product is as follows.
C(x) = 13,000/x +40+x
Find the maximum profit, in dollars.
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A nice problem First lets find the firms total revenue function Rx px Since the demand function is p ...Get Instant Access to Expert-Tailored Solutions
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Mathematical Applications for the Management Life and Social Sciences
Authors: Ronald J. Harshbarger, James J. Reynolds
11th edition
9781337032247, 9781305465183, 1305108043, 1337032247, 1305465180, 978-1305108042
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