Question

Asked Mar 5, 2019

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A company produces chocolate Easter bunnies at a cost per unit of 0.60 + 0.005*x* dollars, where *x* is the number produced. If the price on the competitive market for a bunny this size is $5.00, how many should the company produce to maximize its profit?

Step 1

The cost function per chocolate bunnies is 0.60 + 0.005*x i*n dollars and* x* be the number of item produced in the company.

Step 2

Obtain the total cost as follows.

Step 3

Obtain the marginal co...

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