Solution Found!
Figure 1.55 shows cost and revenue for a company. (a) Approximately what quantity does
Chapter 1, Problem 2(choose chapter or problem)
QUESTION:
Figure 1.55 shows cost and revenue for a company.
(a) Approximately what quantity does this company have to produce to make a profit?
(b) Estimate the profit generated by 600 units.
Questions & Answers
QUESTION:
Figure 1.55 shows cost and revenue for a company.
(a) Approximately what quantity does this company have to produce to make a profit?
(b) Estimate the profit generated by 600 units.
Step 1 of 3
a)
The profit is defined by
\(\pi = R\left( q \right) - C\left( q \right)\)
Here, \(R\left( q \right)\) is the revenue function, and \(C\left( q \right)\) is the cost function with the quantity q.
The company makes a profit when \(R\left( q \right) > C\left( q \right)\).