Q3. The management of a manufacturing company has the following information: Revenue function: R = 1500Q – 15Q2 Profit-maximizing price is OMR 900. a\ Using the above information, determine the following: i. Profit-maximizing quantity. ii. Revenue-maximizing quantity.

Q3. The management of a manufacturing company has the following information: Revenue function: R = 1500Q – 15Q2 Profit-maximizing price is OMR 900. a\ Using the above information, determine the following: i. Profit-maximizing quantity. ii. Revenue-maximizing quantity.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 3MC

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Question

Q3. The management of a manufacturing company has the following information:
Revenue function: R = 1500Q – 15Q2
Profit-maximizing price is OMR 900.
a\ Using the above information, determine the following:

i. Profit-maximizing quantity.

ii. Revenue-maximizing quantity.

b\ Calculate the maximum profit if the total cost is OMR 27550.

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