contestada

At approximately what production level, q, is profit maximized?unitsWhat is the price of the product?price= ____dollarsWhat are the fixed costs?fixed costs = _____dollars

At approximately what production level q is profit maximizedunitsWhat is the price of the productprice dollarsWhat are the fixed costsfixed costs dollars class=

Respuesta :

Solution:

(a) Maximum profit is the highest difference between the revenue R(q) and the cost C(q)/

Hence, the maximum profit from the given table is;

[tex]6750-6075=675[/tex]

Thus, the production level is approximately at;

[tex]q\approx3000units[/tex]

(b) The price P, of the product is;

[tex]\begin{gathered} P=\frac{R(q)}{q} \\ P=\frac{6750}{3000} \\ P=2.25 \end{gathered}[/tex]

The price is 2.25 dollars.

(c) Fixed costs are costs that do not change when sales or production volumes increase or decrease.

Thus,

The fixed costs is 3750 dollars.

Otras preguntas