The management of a manufacturing company has the following information: Revenue function: R = 2700Q - 15Q? Profit-maximizing price is 1500 units. 1\ Using the above information, determine the following: i. Profit-maximizing quantity. ii. Revenue-maximizing quantity. 2\ Suggest a cost function which results in a maximum profit value to be between OMR (25000 and 65000), write the maximum profit value.

Microeconomic Theory
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ISBN:9781337517942
Author:NICHOLSON
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Chapter17: Capital And Time
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Q3.
The management of a manufacturing company has the
following information:
Revenue function: R 2700Q- 15Q?
Profit-maximizing price is 1500 units.
1\ Using the above information, determine the
following:
i. Profit-maximizing quantity.
ii. Revenue-maximizing quantity.
2\ Suggest a cost function which results in a maximum
profit value to be between OMR (25000 and 65000),
write the maximum profit value.
Transcribed Image Text:Q3. The management of a manufacturing company has the following information: Revenue function: R 2700Q- 15Q? Profit-maximizing price is 1500 units. 1\ Using the above information, determine the following: i. Profit-maximizing quantity. ii. Revenue-maximizing quantity. 2\ Suggest a cost function which results in a maximum profit value to be between OMR (25000 and 65000), write the maximum profit value.
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