Question 24 Assuming there is a cost to produce an item, then the quantity needed to maximize total profit will be ______ than the quantity needed to maximize revenue. O Same O Less O More 1 pts
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Step 1: Profit is calculated as Revenue - Cost. Show more…
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Anand J.
The revenue for selling q items is R(q) = 600q - 2q^2, and the total cost of producing q items is C(q) = 120 + 60q. (a) What quantity maximizes profit? (b) Find the value of the maximum profit.
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Find the profit maximizing level of output for the following Marginal Revenue and Marginal Cost functions: MR = 100 - 0.6Q MC = 20 + 0.2Q Q* = 20 MR = 100 - 0.6(20) = 100 - 12 = 88 MC = 20 + 0.2(20) = 20 + 4 = 24 Q* = 50 MR = 100 - 0.6(50) = 100 - 30 = 70 MC = 20 + 0.2(50) = 20 + 10 = 30
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