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Marginal Revenue and Maximizing Profit

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10. Acme estimates marginal revenue on a product to be 200q^-1/3 dollars per unit when the level of production is q units. The corresponding marginal cost is 2q dollars per unit. Suppose the profit is $250 when the level of production is 1 unit. What is Acme's profit when 8 units are produced?
(Note: P'(t) = R'(t) - C'(t) and P(0) = 0)
none of these

4. Acme can produce DVD players at a cost of $140 each and market analysis estimates that if the players are sold at x dollars apiece, consumers in a region will buy approximately 2000e^-0.008x machines per week. At what price should the players be sold to maximize profit?

none of these.

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Problem 10:
P'(q) = R'(q) - C'(q)
Integrate it after substituting the values. When you integrate, you ...

Solution Summary

Marginal Revenue and Maximizing Profit are investigated. The solution is detailed and well presented.