# Cost Analysis : Solution set

Cost Analysis: Cost Analysis

The fresh milk market in Honolulu is purely competitive. The typical production cost is defined by a

a cubic cost schedule as shown below.

Y C

0 200

1 397.06

2 518.48

3 582.62

4 607.84

5 612.5

6 614.96

7 633.58

8 686.72

9 792.74

10 970

Find (a) the cubic equation that describes the production function of milk, (b) find the output of milk that

maximizes profit if the price of milk is $150/ton, © find the maximum profit.

https://brainmass.com/economics/production-function/cost-analysis-solution-set-310254

#### Solution Summary

Cost Analysis is achieved in this case.

$2.19