Page 3 Question 4 (a) Find the following: x/3 + 9x/5 (2x- 1)1/2- 3 i. Lim X0 6x/2- 4x1/4 ii. Lim X-5+ (b) The total revenue curve of a firm is R(q) = 40q -12q and its %3D average cost A(q) = 9? – 12.85q + 20 + 30 400 where q is the firm's output. 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? i.

Page 3 Question 4 (a) Find the following: x/3 + 9x/5 (2x- 1)1/2- 3 i. Lim X0 6x/2- 4x1/4 ii. Lim X-5+ (b) The total revenue curve of a firm is R(q) = 40q -12q and its %3D average cost A(q) = 9? – 12.85q + 20 + 30 400 where q is the firm's output. 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? i.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter10: Prices, Output, And Strategy: Pure And Monopolistic Competition

Section: Chapter Questions

Problem 9E

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