A Taco manufacturer can produce T tons of tacos per day at a cost of C=A+2T+0.1T2
Tacos sell competitively at $42 per ton and the cost of renting the taco factory and all other fixed factors A=$3000 per day.
A. Express revenue (R) and profits (P) and each as a function of T. Sketch C, R and P in a single diagram.
B. What is the profit maximizing rate of output?
C. The rental rate rises from $3000 to $4000. What is the effect on output?© BrainMass Inc. brainmass.com October 9, 2019, 5:19 pm ad1c9bdddf
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