PROFIT for a monopolist`s product, the cost function is
c=0.004q^3 + 20q + 5000
and the demand function is
p=450 - 4q
Find the profit-maximizing output.
Please assist step by step?
profit is revenue minus costs:
Now find the extrema of this by differentiating and setting the derivative to zero and solving for the critical values of q, the critical value that maximises the profit will be the profit maximising output.
q=50 and profit=6000