The Mineola Corporation hires a consultant to estimate the relationship between its profit and its output The consultant reports that the relationship is 10 6Q 5 5Q2 2Q3 0 25Q4 a The consultant says that the firm should set Q equal to 1 to maximize profit Is it true that d dQ 0 when Q 1 Is at a max...

ddQ 6 11Q 6Q 2 Q 3 d 2 dQ 2 11 12Q 3Q 2 a At Q 1 the first derivati ...

The Mineola Corporation hires a consultant to estimate the relationship between its profit and its output. The

Question:

The Mineola hires a consultant to estimate the relationship between its profit and its output. The consultant reports that the relationship is
π = − 10 − 6Q + 5.5Q2 − 2Q3 + 0.25Q4
a. The consultant says that the firm should set Q equal to 1 to maximize profit. Is it true that dπ/dQ = 0 when Q = 1? Is π at a maximum when Q = 1?
b. Mineola's executive vice president says that the firm's profit is a maximum when Q = 2. Is this true?
c. If you were the chief executive officer of the Mineola would you accept the consultant's estimate of the relationship between profit and output as correct?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...