(1) The revenue for a product is R(x) = -0.004x? + 21x 6200 and the cost is C(x) = 0.02x + 38, for x units produced and sold/ (a) Find the marginal profit for 2800 units. (b) Should output be increased or decreased to generate a higher profit?

(1) The revenue for a product is R(x) = -0.004x? + 21x 6200 and the cost is C(x) = 0.02x + 38, for x units produced and sold/ (a) Find the marginal profit for 2800 units. (b) Should output be increased or decreased to generate a higher profit?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter4: Extent (how Much) Decisions

Section: Chapter Questions

Problem 4.2IP

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Question

(1) The revenue for a product is R(x) = -0.004x? + 21x
cost is C(x) = 0.02x + 38, for x units produced and sold.
(a) Find the marginal profit for 2800 units.
(b) Should output be increased or decreased to generate a higher profit?
6200 and the

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