Question
The demand function for indoor plant pots is given by the equation P=1600-4Q where P is the price and Q is the quantity. The average
The demand function for indoor plant pots is given by the equation P=1600-4Q where P is the price and Q is the quantity. The average cost of producing one indoor plant pot is AC=300/Q+20
(1)Write down the equations for total revenue and marginal revenue
(2)Write down the equations for total cost and marginal cost.
(3)Write down the equation for profit.
(4)How many indoor plant pots must be produced and sold to maximize total profit?
(5)Calculate the maximum profit.
Step by Step Solution
3.37 Rating (163 Votes )
There are 3 Steps involved in it
Step: 1
1 Total Revenue TR AR Q 1600 4Q Q 1600Q 4Q2 Marginal Revenue MR dTRDQ 1600 8Q 2 Total Cost TC ...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
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
