5) A company's cost of producing q liters of a chemical is C(q) dollars and this quantity can be sold for R(q) dollars. Suppose C(2,000) = 5,930 and R(2,000) = 7,780. a) What is the profit at a production level of 2000? b) If MC(2,000) = 2.1 and MR(2,000) = 2.5, what is the approximate change in profit if q is increased from 2000 to 2001? Should the company increase or decrease production from q = 2000 and why? c) If MC(2,000) = 4.77 and MR(2,000) = 4.32, should the company increase or decrease production from q = 2,000 and why?
5) A company's cost of producing q liters of a chemical is C(q) dollars and this quantity can be sold for R(q) dollars. Suppose C(2,000) = 5,930 and R(2,000) = 7,780. a) What is the profit at a production level of 2000? b) If MC(2,000) = 2.1 and MR(2,000) = 2.5, what is the approximate change in profit if q is increased from 2000 to 2001? Should the company increase or decrease production from q = 2000 and why? c) If MC(2,000) = 4.77 and MR(2,000) = 4.32, should the company increase or decrease production from q = 2,000 and why?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![5) A company's cost of producing q liters of a chemical is C(q) dollars and this quantity can be sold for R(q) dollars.
Suppose C(2,000) = 5,930 and R(2,000) = 7,780.
a) What is the profit at a production level of 2000?
b) If MC(2,000) = 2.1 and MR(2,000) = 2.5, what is the approximate change in profit if q is increased from
2000 to 2001? Should the company increase or decrease production from q = 2000 and why?
%3D
c) If MC(2,000) = 4.77 and MR(2,000) = 4.32, should the company increase or decrease production from
q = 2,000 and why?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb987ea0e-d702-44e9-b715-89ad5117b0e4%2Ff6d50ef0-ce4e-4c1a-9a88-b4773906f24d%2Fuojiuy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:5) A company's cost of producing q liters of a chemical is C(q) dollars and this quantity can be sold for R(q) dollars.
Suppose C(2,000) = 5,930 and R(2,000) = 7,780.
a) What is the profit at a production level of 2000?
b) If MC(2,000) = 2.1 and MR(2,000) = 2.5, what is the approximate change in profit if q is increased from
2000 to 2001? Should the company increase or decrease production from q = 2000 and why?
%3D
c) If MC(2,000) = 4.77 and MR(2,000) = 4.32, should the company increase or decrease production from
q = 2,000 and why?
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