- 2 The Total Revenue R And The Total Cost C Of An Automobile Company That Produces A Uniform Quantity Q Of Vehicle 1 (32.58 KiB) Viewed 32 times
2. The total revenue (R) and the total cost (C) of an automobile company that produces a uniform quantity (q) of vehicle
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2. The total revenue (R) and the total cost (C) of an automobile company that produces a uniform quantity (q) of vehicle
2. The total revenue (R) and the total cost (C) of an automobile company that produces a uniform quantity (q) of vehicles each year: R= 9000q - 2q? - C = 2q2 +1000q +1000 a. What quantity should the firm produce to maximize profits? b. What will profits be at the maximum? c. Is the optimum quantity (q*) a maximum or a minimum? Show it d. Does the solution calculated here obey the “marginal revenue equals marginal cost" rule? Show it.
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