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 = 2x + 20, that its marginal revenue is MR = 44 − 6x, and that the cost of production of 100 units is $12,160. the optimal level of production is 3 units. a) find the profit function b) Find the profit or loss at the optimal level.
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 = 2x + 20, that its marginal revenue is MR = 44 − 6x, and that the cost of production of 100 units is $12,160. the optimal level of production is 3 units. a) find the profit function b) Find the profit or loss at the optimal level.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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 = 2x + 20,
that its marginal revenue is
MR = 44 − 6x,
and that the cost of production of 100 units is $12,160.
the optimal level of production is 3 units.
a) find the profit function
b) Find the profit or loss at the optimal level.
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