The marginal cost of production is found to be C'(x) = 1000 – 20x + x² where x is the number of units produced. The fixed cost of production is $9000. The manufacturer sets the price per unit at $3400. d) Find the sales volume that yields maximum profit. e) Graph the revenue, cost, and profit functions.

The marginal cost of production is found to be C'(x) = 1000 – 20x + x² where x is the number of units produced. The fixed cost of production is $9000. The manufacturer sets the price per unit at $3400. d) Find the sales volume that yields maximum profit. e) Graph the revenue, cost, and profit functions.

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

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 5MC

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