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    profit maximization

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    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?

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    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.