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 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.

 Apr 28, 2020
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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

 Apr 28, 2020
edited by Guest  Apr 28, 2020

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