A firm knows that its marginal cost for a product is MC = 4x + 20, that its marginal revenue is MR = 50 – 6x, and that the cost of production of 100 units is $22,100. (a) Find the optimal level of production. units (b) Find the profit function. P(x) = (c) Find the profit or loss at the optimal level. There is a profit v of $

A firm knows that its marginal cost for a product is MC = 4x + 20, that its marginal revenue is MR = 50 – 6x, and that the cost of production of 100 units is $22,100. (a) Find the optimal level of production. units (b) Find the profit function. P(x) = (c) Find the profit or loss at the optimal level. There is a profit v of $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Cost, revenue, and profit are in dollars and x is the number of units.
A firm knows that its marginal cost for a product is MC = 4x + 20, that its marginal revenue is MR = 50 – 6x, and that the cost of production of 100 units is $22,100.
(a) Find the optimal level of production.
units
(b) Find the profit function.
P(x) =
(c) Find the profit or loss at the optimal level.
There is a profit
v of $

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