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Unformatted text preview: & using 1st or 2nd derivative test to determine whether it’s a max. or min. Economics ® r(x) = the revenue from selling x items ® c(x) = the cost of producing the x items ® p(x) = r(x) – c(x) = the profit from selling x items (or demand) = marginal revenue = marginal cost = marginal profit dr dx dc dx dp dx Maximum Profit ® Maximum profit (if any) occurs at a production level at which marginal revenue equals marginal cost. Minimizing Average Cost ® The production level (if any) at which average cost is smallest is a level at which the average cost equals the marginal cost. Joke Time Who is the mother of Minnie? Minimum What do you call 144 cockroaches? Gross...
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This note was uploaded on 12/01/2011 for the course MATH 112 taught by Professor Jarvis during the Fall '08 term at BYU.
 Fall '08
 JARVIS
 Calculus

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