The total revenue curve of a firm is R(q) = 40q − 12q2 and its average cost A(q) =1/30q2 − 12.85q + 20 +400/q, where q is the firms output. Is the rate of change of profit increasing or decreasing when the ouput level of the firm is 10 units? Determine the level of output for which the firms profit is maximized. What is the firm's maximum profit?

The total revenue curve of a firm is R(q) = 40q − 12q2 and its average cost A(q) =1/30q2 − 12.85q + 20 +400/q, where q is the firms output. Is the rate of change of profit increasing or decreasing when the ouput level of the firm is 10 units? Determine the level of output for which the firms profit is maximized. What is the firm's maximum profit?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter2: Mathematics For Microeconomics

Section: Chapter Questions

Problem 2.2P

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