The management of a manufacturing company has the following information: Revenue function: R = 2700Q - 15Q? Profit-maximizing price is 1500 units. 1\ Using the above information, determine the following: i. Profit-maximizing quantity. ii. Revenue-maximizing quantity. 2\ Suggest a cost function which results in a maximum profit value to be between OMR (25000 and 65000), write the maximum profit value.

The management of a manufacturing company has the following information: Revenue function: R = 2700Q - 15Q? Profit-maximizing price is 1500 units. 1\ Using the above information, determine the following: i. Profit-maximizing quantity. ii. Revenue-maximizing quantity. 2\ Suggest a cost function which results in a maximum profit value to be between OMR (25000 and 65000), write the maximum profit value.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter9: Applications Of Cost Theory

Section: Chapter Questions

Problem 5E

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