The marginal profit for a certain company is MP₁(x)= x² + 18x-45. The company expects the daily production level to rise from x = 3 to x = 5 units. The management is considering a plan that would have the effect of changing the marginal profit to MP₂(x) = -x² +14x-33. Should the company adopt the plan? Determine the area between the graphs of the two marginal profit functions from x = 3 to x = 5. Interpret this area in economic terms. Should the company adopt the plan that would make the marginal profit be MP₂? OA. Yes, because the company will make a larger profit under the new plan. B. No, because the company's profit will be smaller under the new plan. OC. It is impossible to tell using the given information. The area between the graphs of the two marginal profit functions from x = 3 to x = 5 is sq. units.

The marginal profit for a certain company is MP₁(x)= x² + 18x-45. The company expects the daily production level to rise from x = 3 to x = 5 units. The management is considering a plan that would have the effect of changing the marginal profit to MP₂(x) = -x² +14x-33. Should the company adopt the plan? Determine the area between the graphs of the two marginal profit functions from x = 3 to x = 5. Interpret this area in economic terms. Should the company adopt the plan that would make the marginal profit be MP₂? OA. Yes, because the company will make a larger profit under the new plan. B. No, because the company's profit will be smaller under the new plan. OC. It is impossible to tell using the given information. The area between the graphs of the two marginal profit functions from x = 3 to x = 5 is sq. units.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter16: Labor Markets

Section: Chapter Questions

Problem 16.7P

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