If C is the cost ($ out) a company incurs by producing x units of their commodity,
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If C is the cost ($ out) a company incurs by producing x units of their commodity, the marginal cost MC is equal to lim∆x→0= ∆C/∆x = dC/dx. Similarly, if R is the revenue ($ in ) a company gather by producing x units on their commodity, the marginal revenue MR is equal to dR/dx. Recall that Profit = ( $ in ) - ($ out) = Revenue - Cost. If a company cost function C(x) = 10,000+ 3x^2 and revenue function R(x) = 450x, find the number x units that should be produced to maximize profit.
Related Book For
Mathematical Applications for the Management Life and Social Sciences
ISBN: 978-1305108042
11th edition
Authors: Ronald J. Harshbarger, James J. Reynolds
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