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is 10. The marginal revenue of socks given as MR = 100-2Q The marginal Cost Of socks is given as MC = 5078Q. How many socks w
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Answer #1

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Answer: b) 5

MR = 100 - 2Q

MC = 50 + 8Q

Profit is maximised when MR is equal to MC

MR = MC

100 -2Q = 50 + 8Q

100-50 = 8Q + 2 Q

50 = 10 Q

Q = 50/10 = 5

So, in order to maximize profit 5 socks should be produced

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