Question

17) A manufacturer estimates marginal revenue to be R'(q) = 52q-1/2 dollars per unit when the level of production is q units. The corresponding marginal cost has been found to be 0.29 dollars per unit. Suppose the manufacturer's profit is $500 when the level of production is 16 units. What is the manufacturer's profit when the level of production is 49 units? A) $7.43 B) $506.60 C) $378.30 D) $597.50

Answer 1

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Given; Marginal revenue- r'an- 529% → Revenue = R(q) = ( R'a) da = 52 / 9th da R(q) = 52 ta --%+ R(q) = 104 qto ta cca) = 0.29 cost cca) given Marginal cost fc'cal da = 02ja da (29) = 02 [at] ta Oo1q² + C₂ Profit function = P(q) = R(q)- Coq) = 10492 0.12 +C ; where c= G-G given that, manufactur's profit is $500 when q = 16 units. ão, 500 = 104C165% - 0.1(4612+0 (= 109.6. Bofit P(q) = 1049 0.19² + 108.6 boht of frockning 49 ut → PC49) = 104. (as) – 0:1 (49*1096 P(40) = $597.50 oftien. (D) is correcto