Suppose a company's revenue function is given byq³+370q² and its cost function is given2R(q)by C(q) = 380 + 12q, where q is hundreds of unitssold/produced, while R(q) and C(q) are in totaldollars of revenue and cost, respectively.=A) Find a simplified expression for the marginal profitfunction. (Be sure to use the proper variable in youranswer.)MP(q) ==B) How many items (in hundreds) need to be sold tomaximize profits?Answer:hundredunits must be sold. (Round to two decimal places.)

Marginal cost is the additional cost incurred by a producer when he produces an additional unit of a…

a company's revenue function is given by - q³+370q² and its cost function is given 380 + 12q, where q is hundreds of units sold/produced, while R(q) and C(q) are in total dollars of revenue and cost, respectively. Suppose R(q) by C(q) = = A) Find a simplified expression for the marginal profit function. (Be sure to use the proper variable in your answer.)

a company's revenue function is given by - q³+370q² and its cost function is given 380 + 12q, where q is hundreds of units sold/produced, while R(q) and C(q) are in total dollars of revenue and cost, respectively. Suppose R(q) by C(q) = = A) Find a simplified expression for the marginal profit function. (Be sure to use the proper variable in your answer.)

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter10: Cost Functions

Section: Chapter Questions

Problem 10.7P

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Question

Suppose a company's revenue function is given by
q³+370q² and its cost function is given
2
R(q)
by C(q) = 380 + 12q, where q is hundreds of units
sold/produced, while R(q) and C(q) are in total
dollars of revenue and cost, respectively.
=
A) Find a simplified expression for the marginal profit
function. (Be sure to use the proper variable in your
answer.)
MP(q) =
=
B) How many items (in hundreds) need to be sold to
maximize profits?
Answer:
hundred
units must be sold. (Round to two decimal places.)

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