hello,

need help with this one, need it around 5hrs from now :)

Q: how much is the optimum quantity that yields the maximum profit? show your solution

Selling Price = 60

Total cost TC = 128+69Q-14Q^2+Q^3

Printable View

- January 24th 2008, 06:15 PMarchistrategos214profit maximization
hello,

need help with this one, need it around 5hrs from now :)

Q: how much is the optimum quantity that yields the maximum profit? show your solution

Selling Price = 60

Total cost TC = 128+69Q-14Q^2+Q^3 - January 24th 2008, 06:43 PMJhevon
i think there's some stuff missing from the question, the wording seems weird to me...

anyway, i guess the way to go is to minimize the cost. so we want to minimize the function:

so we find the critical points of the function and pick the one that is the local minimum. that will give you the for minimum cost, which will make our profit larger...