(b) The total revenue curve of a firm is R(q) = 40q – 12q? and its %3D 400 average cost A(q) 309 – 12.85q + 20 + where q is the firm's output. i. Derive an expression C(q) for the firm's total cost function. ii. Derive an expression II(q) for the firm's profit function. iii. Is the rate of change of profit increasing or decreasing when the ouput level of the firm is 10 units? iv. Determine the level of output for which the firm's profit is maximized. v. What is the firms's maximum profit?

(b) The total revenue curve of a firm is R(q) = 40q – 12q? and its %3D 400 average cost A(q) 309 – 12.85q + 20 + where q is the firm's output. i. Derive an expression C(q) for the firm's total cost function. ii. Derive an expression II(q) for the firm's profit function. iii. Is the rate of change of profit increasing or decreasing when the ouput level of the firm is 10 units? iv. Determine the level of output for which the firm's profit is maximized. v. What is the firms's maximum profit?

Algebra and Trigonometry (MindTap Course List)

4th Edition

ISBN:9781305071742

Author:James Stewart, Lothar Redlin, Saleem Watson

Publisher:James Stewart, Lothar Redlin, Saleem Watson

Chapter2: Functions

Section2.4: Average Rate Of Change Of A Function

Problem 4.2E: bThe average rate of change of the linear function f(x)=3x+5 between any two points is ________.

See similar textbooks