Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The figure below shows cost and revenue functions for a bike rental company when it operates q bikes. Should the company add a 90th

image

The figure below shows cost and revenue functions for a bike rental company when it operates q bikes. Should the company add a 90th bike? How about a 115th bike? Explain using marginal revenue and marginal cost. $ C(q) 5000 4000 3000 2000 1000 0 25 50 75 100 125 At q = 90 marginal revenue is R(q) At q = 115 marginal revenue is 9 than marginal cost, so the 90th bike than marginal cost, so the 115th bike > be added. be added.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Algebra

Authors: Robert F Blitzer

7th Edition

013449492X, 9780134453262

More Books

Students also viewed these Mathematics questions