I have gotten parts a and c but i can't seem to get the answer for part b as for part a i get P = -2q^2 + 14q - 6.5 and when i try find the domain for this i get [0.5,6.5] as i assume P must be >/= 0 but my answer sheet given alongside the Q says the answer to part b is [0,7.5] could you help explain why that is or if the previous answer is correct? 11. A company produces a certain good for which the (inverse) demand function is given by p = 15 - 2q,where p is the unit price (expressed in some monetary unit) and q is the quantity sold (expressed insome non-specified unit). The fixed costs amount to 6.5 monetary units and the variable costs amountto 1 monetary unit per non-specified unit of the good. We assume that all goods produced are sold.a. Find the function equation for the profit functionP in terms of the quantity q.b. Find the domain of the profit function P.c. Determine for which production levels q the company makes a profit.

The profit function represents a company's total profit based on its revenue and costs.Revenue is…

Answered: A company produces a certain good for…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

I have gotten parts a and c but i can't seem to get the answer for part b as for part a i get P = -2q^2 + 14q - 6.5 and when i try find the domain for this i get [0.5,6.5] as i assume P must be >/= 0 but my answer sheet given alongside the Q says the answer to part b is [0,7.5] could you help explain why that is or if the previous answer is correct?

11. A company produces a certain good for which the (inverse) demand function is given by p = 15 - 2q,
where p is the unit price (expressed in some monetary unit) and q is the quantity sold (expressed in
some non-specified unit). The fixed costs amount to 6.5 monetary units and the variable costs amount
to 1 monetary unit per non-specified unit of the good. We assume that all goods produced are sold.
a. Find the function equation for the profit functionP in terms of the quantity q.
b. Find the domain of the profit function P.
c. Determine for which production levels q the company makes a profit.

Expert Solution

Step by step

Solved in 6 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions