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Unformatted text preview: C = 1600 + 40 Q + 2 3 Q 3 / 2 He sells his output to local newspaper publishers and the price he obtains depends on how much he tries to sell. Let the demand curve he faces be P = 100 + 512 Q 1 / 2 (a) What are his average and marginal costs of production expressed as functions of Q ? (b) What are his total and marginal revenues expressed as functions of Q ? (c) How much output per day should he produce if he expands production just to the point where marginal revenue equals marginal cost? What pro f t if any will he make in $/day? (hint: substitute X = Q 1 / 2 into the equation you have to solve, determine X , then Q ) 1...
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- Spring '09