The management of a manufacturing company has the following information: Revenue function: R = 2700Q %3D 15Q² Profit-maximizing price is 1500 units.
The management of a manufacturing company has the following information: Revenue function: R = 2700Q %3D 15Q² Profit-maximizing price is 1500 units.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The
management
of
a
manufacturing company has the
following information:
Revenue function: R = 2700Q
%3D
|
-
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.
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