Suppose that the cost of producing q appliances is C(q) = 500 – 4q + q? and the demand function is given by p = 14 –2 q. The quantity that minimizes the average cost function and the corresponding price are q= 22.36 and p= -30.72 a) Why the corresponding price is negative? explain The maximum profit would be -473 b) Why the maximum profit is minus? explain what happens
Suppose that the cost of producing q appliances is C(q) = 500 – 4q + q? and the demand function is given by p = 14 –2 q. The quantity that minimizes the average cost function and the corresponding price are q= 22.36 and p= -30.72 a) Why the corresponding price is negative? explain The maximum profit would be -473 b) Why the maximum profit is minus? explain what happens
Chapter1: Making Economics Decisions
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![Suppose that the cost of producing q appliances is C(q) = 500 – 4q + q? and the demand function
is given by p = 14 – 2 q. The quantity that minimizes the average cost function and the
corresponding price are g= 22.36 and p= -30.72
a) Why the corresponding price is negative? explain
The maximum profit would be -473
b) Why the maximum profit is minus? explain what happens](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F309cd020-2928-401f-b4b4-9d15fafa1d23%2F52c3a15a-4e3f-4185-95fc-ee0728576e4b%2Frwzt1r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose that the cost of producing q appliances is C(q) = 500 – 4q + q? and the demand function
is given by p = 14 – 2 q. The quantity that minimizes the average cost function and the
corresponding price are g= 22.36 and p= -30.72
a) Why the corresponding price is negative? explain
The maximum profit would be -473
b) Why the maximum profit is minus? explain what happens
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