Paramount Electronics has an annual profit given byP = -100,000 + 5,000g - 0.25q? dollars,where q is the number of laptop computers it sells each year. The number of laptop computers it can make and sell eachyear depends on the number n of electrical engineers Paramount employs, according to the equationq = 30n + 0.01n².The average profit P per computer is given by dividing the total profit P by q.P=- 100,000+ 5,000 – 0.259 dollarsDetermine the marginal average profit,dPat an employee level of 15 engineers. HINT [See Example 4.] (Round yourdnanswer to the nearest cent.)dP= $In = 15dnInterpret the result.At an employment level ofengineers, Paramount will increase its average profit per computer byper additional engineer hired.%24

The profit is the extra revenue earned by the firm which exceeds its production cost. Its expressed…

dP at an employee level of 15 engineers. HINT [See Example 4.] (Round your dn Determine the marginal average profit, answer to the nearest cent.) dP dn In = 15 Interpret the result. At an employment level of engineers, Paramount will increase its average profit per computer by per additional engineer hired.

dP at an employee level of 15 engineers. HINT [See Example 4.] (Round your dn Determine the marginal average profit, answer to the nearest cent.) dP dn In = 15 Interpret the result. At an employment level of engineers, Paramount will increase its average profit per computer by per additional engineer hired.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.7P

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