Microeconomic Theory
12th Edition
ISBN: 9781337517942
Author: NICHOLSON
Publisher: Cengage
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Question
Chapter 2, Problem 2.2P
(a)
To determine
To compute: The level of output to maximize profit and calculating profit, thereof.
(b)
To determine
To show: The second-order condition is satisfied in (a).
(c)
To determine
To discuss: If ‘marginal revenue is equal to marginal cost’ rule is followed in the calculation.
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X
If total revenue received from the sale of x items is given by R(x) = 10 In (4x + 1), while the total cost to produce x items is C(x) = ¹
(a) The marginal revenue
(b) The profit function P(x)
(c) The marginal profit when x = 40
(d) Interpret the results of part (c).
(a) How can the marginal revenue be found?
A. Find R(x) - C(x).
B. Find the derivative of R(x).
C. Find the derivative of R(x) - C(x).
R( 2 ).
D. Find R
find the following.
Let x denote the level of output of a firm’s production process. The cost function is given by C (x) = x(x +1)+120 and the demand function of the product by x =1000 - 2p.
(a) Compute profit E(x).
(b) Find the output x at which profit is maximized.
Please answer both subparts.
I will really upvote. Thanks
Find the marginal profit.
C(x)=4x^2; R(x)=x^3+5x+15
Chapter 2 Solutions
Microeconomic Theory
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