Question
Given demand curve of the monopolist :Q=30-0.3P,& given the cost function C=2Q2+20Q+10,
a)find the profit maximizing level of output &price
b)determine the max possible profit.
c)check for the 2nd order condition.
a)find the profit maximizing level of output &price
b)determine the max possible profit.
c)check for the 2nd order condition.
Answers
menge
Q=30-0.3P and
, first let find the price and Q( OUTPUT)
Q=30-0.3P, SO 30-0.3P=0
30=0.3P AND DIVIDE 30/.3P
AND P=100
AND ADD THE 100 ON PRICE
Q=30-0.3(100)= Q=0
FINALLY ,, LET FIND C? C=2Q
2+20Q+10,AND ADD Q VALUE ON C given function means, C=2(0)2+20(0)+10,=c=10
finally find the profit,, £=TR-C
TR=p*q...
100*0= 0 so, c=10,, 0-10
-10so interval or /-10/= 10
and find the 2nd order condition
means dy=f'(x).dx
d2y=f''(x).dx2
so
, first let find the price and Q( OUTPUT)
Q=30-0.3P, SO 30-0.3P=0
30=0.3P AND DIVIDE 30/.3P
AND P=100
AND ADD THE 100 ON PRICE
Q=30-0.3(100)= Q=0
FINALLY ,, LET FIND C? C=2Q
2+20Q+10,AND ADD Q VALUE ON C given function means, C=2(0)2+20(0)+10,=c=10
finally find the profit,, £=TR-C
TR=p*q...
100*0= 0 so, c=10,, 0-10
-10so interval or /-10/= 10
and find the 2nd order condition
means dy=f'(x).dx
d2y=f''(x).dx2
so
Abe Dan
accountant
yohanes abate
What is the value of 2nd order condition means?
2nd order conditin
jony
it is good and easily problem solver
Teshome Nigusie
Good
Asmare
20