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Managerial Economics 13th Edition by James McGuigan,Charles Moyer,Frederick Harris
Edition 13ISBN: 978-1285420929Managerial Economics 13th Edition by James McGuigan,Charles Moyer,Frederick Harris
Edition 13ISBN: 978-1285420929 Exercise 7
Use the cost and demand functions in Exercise 5 to calculate the following:
a. Determine the marginal revenue and marginal cost functions.
b. Show that, at the profit-maximizing output level determined in part (b) of the previous exercise, marginal revenue equals marginal cost and illustrates the economic principle that profits are maximized at the output level where marginal revenue equals marginal cost.
a. Determine the marginal revenue and marginal cost functions.
b. Show that, at the profit-maximizing output level determined in part (b) of the previous exercise, marginal revenue equals marginal cost and illustrates the economic principle that profits are maximized at the output level where marginal revenue equals marginal cost.
Explanation
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The given cost function is as follows:
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Managerial Economics 13th Edition by James McGuigan,Charles Moyer,Frederick Harris
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