Problem 1 (a) TeddyJ is a manufacturer of dish washing liquid. If his monthly demand function for 750ml Size is q = 4000 - 250p and his total cost function is C(q) = 500+0.2q. %3D %3D (i) Derive an expression, R(g) for Teddy J's total revenue curve. (11) Derive an expression, I(q) for Teddy J's profit function. (iii) Determine whether Teddy J's profit is increasing or decreasing when he produces 5 hundred, 750ml bottles of dish washing liquid.

Problem 1 (a) TeddyJ is a manufacturer of dish washing liquid. If his monthly demand function for 750ml Size is q = 4000 - 250p and his total cost function is C(q) = 500+0.2q. %3D %3D (i) Derive an expression, R(g) for Teddy J's total revenue curve. (11) Derive an expression, I(q) for Teddy J's profit function. (iii) Determine whether Teddy J's profit is increasing or decreasing when he produces 5 hundred, 750ml bottles of dish washing liquid.

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

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 3.4CE

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