The revenue for a product is R(x) = - 0.004x2 + 21x – 6200 and the cost is C(x) = 0.02x + 38 for x units produced and sold.   1. Find the marginal profit for 2800 units.   2. Should output be increased or decreased to generate a higher profit?

Managerial Economics: A Problem Solving Approach
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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
Chapter4: Extent (how Much) Decisions
Section: Chapter Questions
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The revenue for a product is R(x) = - 0.004x2 + 21x – 6200 and the cost is C(x) = 0.02x + 38 for x units produced and sold.

 

1. Find the marginal profit for 2800 units.

 

2. Should output be increased or decreased to generate a higher profit?

 

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