You manage a small branch of your bank. You have developed a simplified total cost function given

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You manage a small branch of your bank. You have developed a simplified total cost function given by C =20+4X and a revenue function given by R =22X-4X^2 , where X is the level of activity (in hundreds). C and R are both in units of $’000.

A. Derive the expression for the total profit, P.

B. Calculate the level of activity that maximizes profit and the amount of profit at that level of activity.

C. What is your branch’s profit situation when the activity level is 350 units?

Related Book For answer-question

Microeconomics

ISBN: 9781464146978

1st edition

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

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Posted Date: Jan 24, 2021 04:03 AM

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You manage a small branch of your bank. You have developed a simplified total cost function given

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Revenue function is given by Rx 22x 4x2 Cost function Cx 20 4x A Total pro... View the full answer

Microeconomics

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