The management of a manufacturing company has the following information: Revenue function: R = 2700Q – 15Q² Profit-maximizing price is 1500 units. 1\ Using the above information, determine the following: i. Profit-maximizing quantity. ii. Revenue-maximizing quantity. 2\ Suggest a cost function which results in a maximum profit value to be between OMR (25000 and 65000), write the maximum profit value.
The management of a manufacturing company has the following information: Revenue function: R = 2700Q – 15Q² Profit-maximizing price is 1500 units. 1\ Using the above information, determine the following: i. Profit-maximizing quantity. ii. Revenue-maximizing quantity. 2\ Suggest a cost function which results in a maximum profit value to be between OMR (25000 and 65000), write the maximum profit value.
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
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 3.4CE
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![Q3.
The management of a manufacturing company has the
following information:
Revenue function: R = 2700Q – 15Q?
Profit-maximizing price is 1500 units.
1\ Using the above information, determine the
following:
i. Profit-maximizing quantity.
ii. Revenue-maximizing quantity.
2\ Suggest a cost function which results in a maximum
profit value to be between OMR (25000 and 65000),
write the maximum profit value.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F84f28f42-5a20-4e9c-861c-e731440932ab%2F89a5b56f-1663-4663-bf18-17f26fc25a7a%2Fef6r4c_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Q3.
The management of a manufacturing company has the
following information:
Revenue function: R = 2700Q – 15Q?
Profit-maximizing price is 1500 units.
1\ Using the above information, determine the
following:
i. Profit-maximizing quantity.
ii. Revenue-maximizing quantity.
2\ Suggest a cost function which results in a maximum
profit value to be between OMR (25000 and 65000),
write the maximum profit value.
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