Graphs of the cost function C and revenue function R, in thousands of dollars, f

Question

Graphs of the cost function C and revenue function R, in thousands of dollars, for q units of new product a company is manufacturing are shown. A) estimate the profit the company earns when it produces 1000 units of product. $________
B) estimate the marginal cost and marginal revenue when 1400 units are produced. At this level, should production be increased? ____ Yes, production should be increased. ____ No, production should not be increased
C) estimate the production level that maximizes profit for the company. __________units 9 2 0 1 0 suellop JospuesnouLL

Explanation / Answer

(A) Profit = Revenue - Cost

P(q)=R(q)-C(q)

find profit when q=1000

P(1000)=R(1000)-C(1000)

P(1000)=18-13 Thousands dollar

Profit = $5000

(B) No production should be decreased because revenuew is less than cost.

MR is less increasse then MC .

(C)

When MC=MR , maximum profit

we can see in graph at q=1200 MC=MR

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