A production process varies only with raw materials, as all other inputs are fixed. The cost of a shipment of 8kg of raw materials is fixed at $85. It takes 5kg of raw materials to create one item of...


A production process varies only with raw materials, as all other inputs are fixed.
The cost of a shipment of 8kg of raw materials is fixed at $85.
It takes 5kg of raw materials to create one item of output, Q.
The marginal revenue for this process is expressed by the equation:


MR = -Q^2 + 52Q− 576.
Determine the optimal amount of raw materials to be utilized in this production process.



Jun 09, 2022
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