Question

Suppose a company's revenue function is given by R(q) = - q° + 200q and its cost function is given by C(q) = 160 + 11q, where q is hundreds of units sold/produced, while R(q) and C(q) are in total dollars of revenue and cost, respectively. A) Find a simplified expression for the marginal profit function. (Be sure to use the proper variable in your answer.) MP(q) B) How many items (in hundreds) need to be sold to maximize profits? (Round your answer to two decimal places.) hundred units must be sold. Answer:

Answer 1

Solution's no Criven data, Revenue function R(q) = -q3+ 2009 cost function CQ) = 160+119. A) : profit function pg) = REG) - CG). = 4+2009 160–119 Marginal profita peq) --839172002)9#0-1019 =-597409-41 Mp[Q) - plasa -397 ucq-11) B) marzimise poofito profit function Plaj In order to mase mize profit take derivation of parfir function and set it to zero. Algjeo MP QS=0 -39 +40uq-ico 9= - 400 V100)? 44-336-1) 863)

=-400+ 145-12X41 = -4000 V 16000D-132 -6 - 400 I / 1599868 -6 -U0D 399.8349 9 00 + 399-8349 -400 - 399.8349 9- 0.02951 19= 133. 3058 Now peg) = Mpa)=-3629) 4400 impla la -69; +400 o mpkg) = -660-62751)+400 - 399.8349 tre le minimum - Meplaja. -6(133-3058) #401 = -399.8349 -ve fe marinum. where upay is pegative thers at that a value and it maxinum marginal profit ga 133.3058 (in hundreads) units need to Sold maximize profits.