4) Let C(Q) denote the cost of producing Q units of a commodity per month. What is the interpretation of C'(1000) = 25? Suppose the price obtained per unit is fixed at 30 and that the current output per month is 1000. Is it profitable to increase production?

4) Let C(Q) denote the cost of producing Q units of a commodity per month. What is the interpretation of C'(1000) = 25? Suppose the price obtained per unit is fixed at 30 and that the current output per month is 1000. Is it profitable to increase production?

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

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 3.4IP

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4) Let C(Q) denote the cost of producing Q units of a commodity per month. What is the
interpretation of C'(1000) = 25? Suppose the price obtained per unit is fixed at 30 and that
the current output per month is 1000. Is it profitable to increase production?

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