in a partioular type of airplane in thousands where quantity

in a partioular type of airplane (in thousands), where quantity is q, total cost is C, and marginal cost is MC. Airplanes 100 412 112 140 180 1108 1328 10 Suppose this firm has the capacity to produce up to 11 airplanes of this particular type. If the firm produce? ? airplanes. (Enter your response using an integer.) integer)

Solution

In the first blank the answer is 11 airplanes because price is fixed at $208,000. Hence revenue is maximized when 11 planes are produced.

In the second blank, the answer is 9 planes because P = 208,000 should be close to MC which is 180,000 at Q = 9. Profit = TR - TC

= 9*208,000 - 1108,000

= $764 thousand.