1. Business
  2. Economics
  3. 1 s2104 clancy the owner of clancy farms can produce...

Question: 1 s2104 clancy the owner of clancy farms can produce...

Question details


1. S2.1.04 Clancy, the owner of Clancy Farms, can produce up to 1300 barrels of corn on his farm. His seasonal cost is C(q) = 550+ 804-0.0292 When q barrels of corn are sold to the market, his seasonal revenue is 127q-0.04q2 Determine the marginal revenue and marginal cost at q = 940 MC(940) - MR(940) Since the marginal cost is less than the marginal revenue at q-940, the quantity should be increased so that profit is maximized. The output level that maximizes profit is

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution