I have a question about Managerial Economics I want some pro
I have a question about Managerial Economics. I want some professional tutors help me solve them.Please give me detailed solutions. Thank you!
Solution
The condition would be as below:
AC = MC
0.004q^2 + 50 + (750/q) = 0.012q^2 + 50
Therefore, q = 45.43
At this quantity level the profit would be 0.
(P45.43) – (0.004 × 45.43^3 + 50 × 45.43 + 750) = 0 (Where P is the price)
P45.43 = 3,396.55
P = 74.76
Answer: Price = Minimum average cost = $74.76

