Mathematics - Application of Calculus in Commerece
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A manufacturer estimates marginal revenue to be R'(q) = 100q^ -1/2 dollars per unit when the level of production is q units. The corresponding marginal cost has been found to be 0.4q dollars per unit. Suppose the manufacturer's profit is $520 when the level of production is 16 units. What is the manufacturer's profit when the level is 25 units?
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The expert determines what the manufacturer's profit is when the level is 25 units. A complete, neat and step-by-step solution is provided.
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R?q) = 100.q^(-1/2).
Integrating, we get
R(q) = 100.q^(-1/2 + 1)/(-1/2 + 1) = 200.q^(1/2) + ...
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