Quiz 4
a) We get P(q) = R(q)-C(q) =
We get profit function as revenue function minus cost function.
Since revenue-cost = profit.
b) Marginal cost function is obtained by differentiating cost with respect to q i.e. quantity.
Marginal cost is derivative of cost function.
C(q)= 21q+5
When we differentiate we get 21+0 =21
MC= 21
Marginal cost is nothing but additional cost incurred when exactly 1 unit more is produced. Thus if a company is having 5000 units...