Acme estimates marginal revenue on a product to be 200q^-1/3 dollars per unit when the level of production is q units. The corresponding marginal cost is 2q dollars per unit. Suppose the profit is $300 when the level of production is 1 unit. What is Acme's profit when 8 units are produced?
(Note: P'(t) = R'(t) - C'(t) and P(0) = 0)
none of these
Given R'(q)=200*q^(-1/3) and C'(q)=2q. Note that P'(q) = R'(q) - C'(q). So,
P(q)= 200*q^(-1/3) - 2q
So, integrating it, we have
Profit is evaluated. The solution is detailed and well presented. The response received a rating of "5/5" from the student who originally posted the question.