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Ecomonic incentives

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Ecomonic incentives were at the heart of westward expansion across North America in the late 18th centuries, so let's apply some economic ananlysis to the situation. The year is 1804 and you estimate that Merriwether Lewis 'totl cost of trapping beaver in Oregon and taking the pelts to market in St. Louis is given by the funtion TC=50+20Q + .25Q2 (25Q to the second power), where Q is the quantity of beaver pelts. The pelts sell for $140 each in St. Louis. How many pelts should Lewis bring to St. Louis in order to maximize his profits?

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Hello,

ANSWER

Here the TC function is given as TC=50+20Q + .25Q2
Where Q is the quantity of beaver pelts.

The pelts sell for $140 each in St. Louis.
So total revenue = $140*Q (as we know that total revenue
TR= price per unit * ...

Solution Summary

Economic incentives are examined for North American Expansions. .

$2.19