profit maximization condition

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• profit maximization

  For profit maximization, We have the condition Marginal Revenue Product (MRP)= Marginal input cost (MIC) Now Product function Y=305x-2x^2, Marginal Product (MP) = dY/dx = 305-2*2x=305-4x MRP=MP*P=610-8x MIC=price of x=10 per unit Eauating the

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  The market condition is monopoly and profit maximization condition here is MC=MR 15-0.00001Q=5 Q=1,000,000 P=TR/Q=15-0.000005*Q=15-0.000005*1000000=10 Profits = (10-5)*1000000=10,000,000 B.

• calculate demand and price for two different demand functions that have the same cost function

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  of profit maximization exercise.