The management of a manufacturing company has the following information: Revenue function: R = 3600Q – 25Q2 Profit-maximizing price is $ 2100. a\ Using the above information, determine the following: Profit-maximizing quantity. Revenue-maximizing quantity. b\ Suggest a cost function which results in a maximum profit value to be between $ (20000 and 60000), write the maximum profit value.
The management of a manufacturing company has the following information: Revenue function: R = 3600Q – 25Q2 Profit-maximizing price is $ 2100. a\ Using the above information, determine the following: Profit-maximizing quantity. Revenue-maximizing quantity. b\ Suggest a cost function which results in a maximum profit value to be between $ (20000 and 60000), 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
Chapter9: Applications Of Cost Theory
Section: Chapter Questions
Problem 5E
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The management of a manufacturing company has the following information:
Revenue function: R = 3600Q – 25Q2
Profit-maximizing price is $ 2100.
a\ Using the above information, determine the following:
- Profit-maximizing quantity.
- Revenue-maximizing quantity.
b\ Suggest a cost function which results in a maximum profit value to be between $ (20000 and 60000), write the maximum profit value.
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