Your college newspaper, The Collegiate Investigator, sells for 90¢ per copy. The cost of producing x copies of an edition is given by C(x) = 50 + 0.10x + 0.001x2 dollars.' (a) Calculate the marginal revenue R'(x) and profit P'(x) functions. HINT [See Example 2.] R'(x) = P'(x) = (b) Compute the revenue and profit, and also the marginal revenue and profit, If you have produced and sold 500 copies of the latest edition. revenue 2$ profit %24 marginal revenue 2$ X per additional copy marginal profit 2$ X per additional copy Interpret the results. The approximate loss Vx from the sale of the 501st copy is $ (c) For which value of x is the marginal profit zero? X copies %3D Interpret your answer. The graph of the profit function is a parabola with a vertex at x = X , so the profit is at a maximum when you produce and sell X copies.
Your college newspaper, The Collegiate Investigator, sells for 90¢ per copy. The cost of producing x copies of an edition is given by C(x) = 50 + 0.10x + 0.001x2 dollars.' (a) Calculate the marginal revenue R'(x) and profit P'(x) functions. HINT [See Example 2.] R'(x) = P'(x) = (b) Compute the revenue and profit, and also the marginal revenue and profit, If you have produced and sold 500 copies of the latest edition. revenue 2$ profit %24 marginal revenue 2$ X per additional copy marginal profit 2$ X per additional copy Interpret the results. The approximate loss Vx from the sale of the 501st copy is $ (c) For which value of x is the marginal profit zero? X copies %3D Interpret your answer. The graph of the profit function is a parabola with a vertex at x = X , so the profit is at a maximum when you produce and sell X copies.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter11: Price And Output Determination: Monopoly And Dominant Firms
Section: Chapter Questions
Problem 3E
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Microeconomics: Principles & Policy
Economics
ISBN:
9781337794992
Author:
William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:
Cengage Learning