Question

FIND F AND G USING SECOND IMAGE. FIND A (EXACT VALUE OF Q)

(f) What production level q offers the largest profit for the company. (Make sure you actually show that q is a global maximum using the Second Derivative Test, and do not worry if q is not an integer value. Do not forget to check the production levels q-0 and q-700.) g) (If needed, round down the value of q obtained in (f) to the nearest integer.) What is the largest profit possible? largest possible profit A certain firm's cost of production is given by C(q) = q2 + 8001 + 78400 where 0 350 (a) Find the exact value of q at which the average cost function al) is minimized? (Make sure you actually show that q is a global minimum using the Second Deri ative Test. Do not forget to dieck the production levels q 0 and q-350.) A company has estimated that the price it can charge for its product fluctuates with the level of production. In particular, the demand equation for the product is P(a) 3q +3000. (P) is in dollars.) The cost of production in dollars is given by C(a)-4+7. Suppose that Osq 700 a) Express the company's revenue as a function of That is, write down the revenue function, R) R(g) b) Express the company's profit as a function of q. That is, write down the profit function, π(q). c) Compute the marginal cost at q 100 units. MC (100) d) Compute the marginal revenue at q 100 units. MR(100) e) Should the company increase or decrease production from 100 units in order to gain more profits? Explain why in terms of marginal cost and marginal revenue.

Answer 1

if satisfied with the explanation, please rate it up..

33000 oIwhon: Revenue b.ne R(1): 1-3 ● ● 30001) ジ9: 1498 and 3 (1498 e 74,794.333 dw doa mle obLe 1 4 3 吥 7L799+.33 ollars Άν 9,=280