Suppose that the marginal cost for a product is MC = 60sqrt(x+1) and its fixed cost is $340. If the marginal revenue for the product is MR=80x, find the profit or loss from production and sale of (a) 3 units. (b) 8 units.
Profit or (loss) = marginal revenue - marginal cost of production - fixed cost
Profit or loss 80x - 60sqrt(x+1) - 340
3 units (80)*3 - 60(sqrt4) - 340 = -220 a loss
8 units (80)*8 - 60(sqrt9) - 340 = + 120 a profit