Cost Function : Average Cost, Revenue and Profit – Maximum or Minimum
October 6th, 2022
Given the cost function C(q) = 4000 + 50q + 0.002q2 and the demand function p = 80 – 0.025q, find the value of q for which:
(a) Average cost is a minimum.
(b) Revenue is a maximum.
(c) Profit is a maximum.