Answer question 5 A company's revenue and cost function is given byR = 80Q - Q² and C = 55 – 120Q + Q²respectively.(a)Determine the level of output that maximises the profit.(b)output that maximises the profit. Comment on the answerfound.Determine the price elasticity of demand at the level of5.

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A company's revenue and cost function is given by R = 80Q – Q? and C = 55 – 120Q + Q? respectively. (a) Determine the level of output that maximises the profit. (b) Determine the price elasticity of demand at the level of output that maximises the profit. Comment on the answer found.

A company's revenue and cost function is given by R = 80Q – Q? and C = 55 – 120Q + Q? respectively. (a) Determine the level of output that maximises the profit. (b) Determine the price elasticity of demand at the level of output that maximises the profit. Comment on the answer found.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Answer question 5

A company's revenue and cost function is given by
R = 80Q - Q² and C = 55 – 120Q + Q²
respectively.
(a)
Determine the level of output that maximises the profit.
(b)
output that maximises the profit. Comment on the answer
found.
Determine the price elasticity of demand at the level of
5.

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