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Your company has instructed you to engage in optimization analysis to determine whether the company is maximizing its profit (total revenue minus total cost)
Your company has instructed you to engage in optimization analysis to determine whether the company is maximizing its profit (total revenue minus total cost) at its current output level. a.At its current level of output Q1, marginal revenue (MR) is equal to $1,120 and marginal cost (MC) is equal to $1,345; would you advise the company to increase output, decrease output, or keep output at Q1? b. When you analyze the situation next month while producing output Q2, you see that MR = $1,250 and MC = $1,235; would you advise the company to increase output, decrease output, or keep output at Q2?
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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
