# profit maximization

A corporation hires a company to determine the relationship between its profit and its output. The report back is that the relationship is:

? = 1/3Q^3-3Q^2+5Q+250

It states that profit is maximized when Q=1. The company believes that the relationship as stated above is correct, but they disagree with the results that profit is maximized when Q=1. Who is correct and why?

© BrainMass Inc. brainmass.com October 10, 2019, 1:02 am ad1c9bdddfhttps://brainmass.com/economics/finance/profit-maximization-profit-output-318151

#### Solution Preview

P = 1/3Q^3-3Q^2+5Q+250

to find a min. of a function, we take its derivative with respect to Q, and set it ...

#### Solution Summary

The expert examines profit maximization profit and output.

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