Suppose that the cost of producing q appliances is C(q) = 500 – 4q + q? and the demand functionis given by p = 14 – 2 q. The quantity that minimizes the average cost function and thecorresponding price are g= 22.36 and p= -30.72a) Why the corresponding price is negative? explainThe maximum profit would be -473b) Why the maximum profit is minus? explain what happens

The term “profit” is defined as an excess of total revenue (TR) over the total cost (TC). The…

Suppose that the cost of producing q appliances is C(q) = 500 – 4q + q? and the demand function is given by p = 14 –2 q. The quantity that minimizes the average cost function and the corresponding price are q= 22.36 and p= -30.72 a) Why the corresponding price is negative? explain The maximum profit would be -473 b) Why the maximum profit is minus? explain what happens

Suppose that the cost of producing q appliances is C(q) = 500 – 4q + q? and the demand function is given by p = 14 –2 q. The quantity that minimizes the average cost function and the corresponding price are q= 22.36 and p= -30.72 a) Why the corresponding price is negative? explain The maximum profit would be -473 b) Why the maximum profit is minus? explain what happens

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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