heABCCompanyLtd.HasapproximatedthemarginalrevenuefunctionforoneofitsproductsbyMR=20x  – 2x 2 .ThemarginalcostfunctionisapproximatedbyMC=81  – 16x+x 2 .Determinetheprofitmaximizingoutput,thetotalprofit,thetotalrevenuefunction,anddemandfunction

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter4: Utility Maximization And Choice
Section: Chapter Questions
Problem 4.12P
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heABCCompanyLtd.HasapproximatedthemarginalrevenuefunctionforoneofitsproductsbyMR=20x
 –
2x
2
.ThemarginalcostfunctionisapproximatedbyMC=81
 –
16x+x
2
.Determinetheprofitmaximizingoutput,thetotalprofit,thetotalrevenuefunction,anddemandfunction
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