Here is the production cost function, in $ of producing q units of a product: 2200 C(q) = 300 +0.8q2 + %3D and the demand function of the product is: p(x) = 200-0.05q a. Determine the marginal cost, marginal revenue and marginal profit when q=50 and q=150?

Here is the production cost function, in $ of producing q units of a product: 2200 C(q) = 300 +0.8q2 + %3D and the demand function of the product is: p(x) = 200-0.05q a. Determine the marginal cost, marginal revenue and marginal profit when q=50 and q=150?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.7P

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Question

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Here is the production cost function, in $ of producing q units of a product:
2200
C(q) = 300 +0.8q2 +
%3D
and the demand function of the product is:
p(x) = 200 - 0.05q
a. Determine the marginal cost, marginal revenue and marginal profit when q=50 and q=150?
b. Interpret the results of the calculation in part (a) if it is related to cost, revenue
and profit?

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