a. sketch the Graph of y = 2* and y = G. Also describe the application of exponential and %3D logarithmic functions in Business. b. A manufacturer estimates that when q thousand units of a particular commodity are produced each month, the total cost will be C(q) = 0.4q? + 3q + 40 40 thousand dollars, and all q units can be sold at a price of p(q) = 22.2 – 1.2q dollars per unit. 1. Determine the level of production that results in maximum profit. What is the maximum profit? 2. At what level of production is the average cost per unit A(q) = ! C(a) minimized? 3. At what level of production is the average cost equal to the marginal cost C'(q)?

a. sketch the Graph of y = 2* and y = G. Also describe the application of exponential and %3D logarithmic functions in Business. b. A manufacturer estimates that when q thousand units of a particular commodity are produced each month, the total cost will be C(q) = 0.4q? + 3q + 40 40 thousand dollars, and all q units can be sold at a price of p(q) = 22.2 – 1.2q dollars per unit. 1. Determine the level of production that results in maximum profit. What is the maximum profit? 2. At what level of production is the average cost per unit A(q) = ! C(a) minimized? 3. At what level of production is the average cost equal to the marginal cost C'(q)?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.7P

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