For a certain company the marginal revenue function is given as,MR=20x-x2 and the marginal cost function is described as MC=81-16x+x2. Determine the profit maximizing output and the profit at the optimal output.

For a certain company the marginal revenue function is given as,MR=20x-x2 and the marginal cost function is described as MC=81-16x+x2. Determine the profit maximizing output and the profit at the optimal output.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter9: Applications Of Cost Theory

Section: Chapter Questions

Problem 1.3CE

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For a certain company the marginal revenue function is given as,MR=20x-x²

and the marginal cost function is described as MC=81-16x+x². Determine the profit maximizing output and the profit at the optimal output.

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