Re: JNU Questions

Posted by vandita24x7 on May 16, 2013; 1:27pm
URL: http://discussion-forum.276.s1.nabble.com/JNU-Questions-tp7580796p7580810.html

see, for such a dd curve wher revenue is fixed..and cost function depends on o/t produced there to obtain the profit max level of o/t, u hav to go by trial methods, see here cost fn is 10q. hence if i produce q=2 then cost = 10*2=20 which is same as revenue(fixed in question) so at q=2 profit = tr-tc= 20-20=0, again if q>2 say q=3 is produced then profit is 20-30= -10 hence not possible. only at q=1 profit is maximized..

ur take agree or disagree..