Suppose total revenue (TR) and total cost (TC) functions of Samsung are following: TR = 175Q – 2.5Q2 TC = 50 + 10Q Requirements: a. Calculate profit maximizing output level of Samsung using marginal revenue (MR) and marginal cost (MC) approach. b. Find out the amount of profit earned by Samsung at profit maximizing level of output calculated in part a. c. Calculate average revenue (AR) function and slope of average revenue (AR) function.
Samsung is a South Korean company and its global success story was started with the launch of the Galaxy S series of smartphones by the end of 2000. Now, Samsung is included among top 5 companies that are manufacturing electronic apparatuses in all over the world. Samsung is considered as one of the main suppliers of electronic goods such as flash memory, chips, semiconductors, batteries and hard drive to other manufacturing companies such as Sony, Nokia etc. The company is also providing a wide range of electronic products to consumers, like smartphones, tablets, audio sounds, smart switches, refrigerators, air solutions, monitors etc. During COVID-19 pandemic, Samsung supported the global fight with corporate social responsibility (CSR) initiatives such as the smart factory program and also providing training to human resources. Samsung has also been working on different projects with United Nations Development Program (UNDP) for achieving Sustainable Development Goals, for example, Samsung launched generation 17 program.
Suppose total revenue (TR) and total cost (TC) functions of Samsung are following:
TR = 175Q – 2.5Q2
TC = 50 + 10Q
Requirements:
a. Calculate profit maximizing output level of Samsung using marginal revenue (MR) and marginal cost (MC) approach.
b. Find out the amount of profit earned by Samsung at profit maximizing level of output calculated in part a.
c. Calculate average revenue (AR) function and slope of average revenue (AR) function.
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