The data in Table 1 provides a business\'s marginal revenue, R(r), and marginal

Question

The data in Table 1 provides a business's marginal revenue, R(r), and marginal cost, ) i of dollars per a units. Use the table to answer questions 6-9 n thousands 10 2030 40 50 (2) 1.150 0.226 0.045 | 0.008 | 0.002 C() 0.893 2.010 2.233 1564 0.001 Table 1 6. (5 points) Provided R(x) and C(r) are strictly increasing or decreasing between data points, which of the following provides the best estimate of where profit is maximized? 01520 25 30 35 45 7. (5 points) At a production level of 30 units the marginal profit... O is less than zero which means the company must have a profit less negative profit) at that production level. O is greater than zero which means the company must earn a profit at that production level. O is less than O is greater than zero which means the company's profit is neither increasing nor dec zero which means the company's profit is decreasing at that production level. that production level. O none of the above choices are correct

Explanation / Answer

let profit is P(x)

6)

R'(x) decreasing from x=10 to x=50

C'(x) increasing from x=10 to x=30 and decreasing from x=30 to x=50

profit is maximised when difference of R'(x) and C'(x) is minumum

x=45 provides best estimate of where profit is maximised  

7)

P'(x)=R'(x)-C'(x)

is less than zero which means the company's profit is decreasing at that produnction level

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.