A firm knows that its marginal cost for a product is MC = 4x + 20, that its marginal revenue is MR = 50 – 6x, and that the cost of production of 100 units is $22,100. (a) Find the optimal level of production. units (b) Find the profit function. P(x) = (c) Find the profit or loss at the optimal level. There is a profit v of $

A firm knows that its marginal cost for a product is MC = 4x + 20, that its marginal revenue is MR = 50 – 6x, and that the cost of production of 100 units is $22,100. (a) Find the optimal level of production. units (b) Find the profit function. P(x) = (c) Find the profit or loss at the optimal level. There is a profit v of $

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

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 5MC

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