+0  
 
0
78
1
avatar

So I've been stuck on this question for a while, and I tried asking others and googling it. However, I still don't understand as to how I can get the right answer. It's a lenghty question, and I already asked on another math forum, so I'm just gonna post it here:

 

https://math.stackexchange.com/questions/2801275/finding-the-firms-maximum-monthly-profit ]

 

Thank you in advance! :)

Guest May 30, 2018
 #1
avatar
0

 Equate the marginal revenues to marginal costs and solve for x.

 

 5000 -20x =300 + 1/4x^2, solve for x

x = ~103 items sold.

Revenues =5000x - 10x^2

                 =5000*103 - 10* 103^2

                 =515,000 - 106,090

                 =$408,910 - total revenues for 1 month.

 

Total costs =300x + 1/12x^2

                  =30,900 + 884.08

                  =$31,784.08 - total costs for 1 month.

 

Total revenues - Total costs =$408,910 - $31,784.08 =$377,125.92 - The firm's maximum monthly profit.

Guest May 30, 2018

22 Online Users

avatar
avatar

New Privacy Policy

We use cookies to personalise content and advertisements and to analyse access to our website. Furthermore, our partners for online advertising receive information about your use of our website.
For more information: our cookie policy and privacy policy.