Question

A company's demand and cost functions are given by p(q) = -0.05q + 525 and C(q) = 0.01q^3 - 7q^2 + 85q. What is the company's profit when marginal revenue is $450 per item?

Name: A company's demand and cost functions are given by p(q) = -0.05q + 525 and C(q) = 0.01q^3 - 7q^2 + 85q. What is the company's profit when marginal revenue is 450 per item?
Uploaded: 2023-03-06T12:54:49-08:00
Duration: 3 min 36 s
Channel: Sri K
Description: A company's demand and cost functions are given by p(q) = -0.05q + 525 and C(q) = 0.01q^3 - 7q^2 + 85q. What is the company's profit when marginal revenue is 450 per item?

          A company's demand and cost functions are given by p(q) = -0.05q + 525 and C(q) = 0.01q^3 - 7q^2 + 85q. What is the company's profit when marginal revenue is $450 per item?

A company's demand and cost functions are given by p(q) = -0.05q + 525 and C(q) = 0.01q^3 - 7q^2 + 85q. What is the company's profit when marginal revenue is 450 per item?

Added by Steven M.

Calculus: Early Transcendentals

James Stewart 8th Edition

Instant Answer

Solved by Expert Sri K

03/06/2023

Step 1

Marginal revenue is the derivative of the total revenue function, which is the product of price and quantity: TR(q) = p(q)q. So, we have: MR(q) = dTR(q)/dq = d(p(q)q)/dq = p(q) + qdp(q)/dq Using the demand function, we can express price as a function of Show more…

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