3. The manager of a company has determined that the cost function for the production can be described by C = 3Q? + 10Q + 450 where Q is the output each month. If the demand function for any month is Pd = 400 - 2Q, where Pa is the price in £. (а) Determine the following: (i) Revenue function, R (ii) marginal cost function, MC (iii) Average cost function, AC (b) Determine the profit function, P. Hence, find the (i) level of output that would maximise the profit. (ii) maximum profit. (c) Find the marginal average profit function.

3. The manager of a company has determined that the cost function for the production can be described by C = 3Q? + 10Q + 450 where Q is the output each month. If the demand function for any month is Pd = 400 - 2Q, where Pa is the price in £. (а) Determine the following: (i) Revenue function, R (ii) marginal cost function, MC (iii) Average cost function, AC (b) Determine the profit function, P. Hence, find the (i) level of output that would maximise the profit. (ii) maximum profit. (c) Find the marginal average profit function.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.7P

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