(b) 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 S85. It takes 5kg of raw materials to create one item...

Extracted text: (b) 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 S85. It takes 5kg of raw materials to create one item of output, Q. The marginal revenue for this production process is expressed by: MR -Q? + 52Q – 576. Determine the optimal amount of raw materials to be used in this production process.