(iv) How many 750ml bottles of dish washing liquid should Teddy J produce per month if he wishes to maximize his profits. (b) A firm has an average cost function 125 q? A(q) = +: 4. 16 where q is the firm's output. (1) Determine the level of output for average costs are minimum. (ii) Hence determine the range of values for which average costs are decreasing.
(iv) How many 750ml bottles of dish washing liquid should Teddy J produce per month if he wishes to maximize his profits. (b) A firm has an average cost function 125 q? A(q) = +: 4. 16 where q is the firm's output. (1) Determine the level of output for average costs are minimum. (ii) Hence determine the range of values for which average costs are decreasing.
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 9SQP
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(a) Teddy J is a manufacturer of dish washing liquid . If his monthly demand function for 750ml
size is q = 4000 − 250p and his total cost function is C(q) = 500 + 0.2q.
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