Question

Commercial Recording, Inc., is a manufacturer and distributor of reel-to-reel recording decks for commercial recording studios. Revenue and cost relations are:
TR = $3,00- $00Q.5Q2 AND TC = $100,000 + $1,500Q + $0.1Q2
A. Calculate output, marginal cost, average cost, price, and profit at the average cost-minimizing activity level.
B. Calculate these values at the profit-maximizing activity level.
C. Compare and discuss your answers to parts A and B.



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  • CreatedJuly 29, 2013
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