**Unformatted text preview: **and f’(P) < 0 for P > P* and f”(P) < 0 for all P > 0? (ii) What if f’(P) > 0 and f”(P) > 0 for all P > 0. 5. The cost of manufacturing laboratory benches is given by the total cost function, The price charged to educational institutes and commercial outlets are governed by the respective demand functions, P = 480 – 6 Q P = 915 –8 Q (a) Write down the equation for the profit function for each outlet. (b) Calculate the price and number of benches for which profit is maximized and minimized. Calculate the maximum profit. (c) Show that MR = MC when profit is maximized, and minimized. How would you distinguish between the maximum and minimum profits? 6. (a) Derive a general expression for the price elasticity of demand for the function Describe verbally how demand changes in response to price changes for this function, Q, P > 0. (b) (i) Evaluate the point elasticity , ε d , at P = 15 and at P = 30 ECON1003 Tutorial 31...

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- Economics, total cost function