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A company participating in a market of perfect competition invoices monthly 154,200 units, the sum of $308,400,000, so P = $2,000 With this level of sales, the company has saturated its production capacity and as a result its costs have risen sharply. Its marginal cost (MC) is MC = (q2 / 2,000,000) - (q / 20) + 2,450. It is determined that its fixed costs (FC) amount to $20,500,000. You want to know:

A company participating in a market of perfect competition invoices monthly 154,200 units, the sum of $308,400,000, so P = $2,000 With this level of sales, the company has saturated its production capacity and as a result its costs have risen sharply. Its marginal cost (MC) is MC = (q2 / 2,000,000) - (q / 20) + 2,450. It is determined that its fixed costs (FC) amount to $20,500,000. You want to know:

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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A company participating in a market of perfect competition invoices monthly 154,200 units, the sum of $308,400,000, so P = $2,000

With this level of sales, the company has saturated its production capacity and as a result its costs have risen sharply. Its marginal cost (MC) is

MC = (q2 / 2,000,000) - (q / 20) + 2,450.

It is determined that its fixed costs (FC) amount to $20,500,000. You want to know:

(a) whether the company should increase or decrease its production and by how much.

b) what would be the optimal level of production (q*)?

c) what is the profit at the optimal level of production?

d) what is the company's current profit?  

PD: I have republished this exercise ONLY to get an answer to question d). Thank you

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