Question

Average total cost (ATC) = 300 + 97,500/Q and the demand function: Q = 1000 - P 1- Determine the quantity to maximize profit? Maximize revenue
2- To avoid losses, what should be the price and quantity?​

Answer 1

Explanation:

1.In order to maximize profits, it is necessary to make marginal benefits equal to marginal costs. To maximize income, it is necessary to calculate the first derivative as 0, which is the marginal benefit. Therefore, a marginal benefit of 0 maximizes income.

2.To avoid losses, it is important to ensure that revenue exceeds costs.