ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Suppose a company's revenue function is given by
q³+370q² and its cost function is given
2
R(q)
by C(q) = 380 + 12q, where q is hundreds of units
sold/produced, while R(q) and C(q) are in total
dollars of revenue and cost, respectively.
=
A) Find a simplified expression for the marginal profit
function. (Be sure to use the proper variable in your
answer.)
MP(q) =
=
B) How many items (in hundreds) need to be sold to
maximize profits?
Answer:
hundred
units must be sold. (Round to two decimal places.)
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Transcribed Image Text:Suppose a company's revenue function is given by q³+370q² and its cost function is given 2 R(q) by C(q) = 380 + 12q, where q is hundreds of units sold/produced, while R(q) and C(q) are in total dollars of revenue and cost, respectively. = A) Find a simplified expression for the marginal profit function. (Be sure to use the proper variable in your answer.) MP(q) = = B) How many items (in hundreds) need to be sold to maximize profits? Answer: hundred units must be sold. (Round to two decimal places.)
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