Question
The cost function for a product in a firm is given by 5q2, where q is the amount of production. The firm can sell the product at a market price of Rs 50 per unit. The number of units to be produced by the firm such that the profit is maximized is
A)5B)10
C)15
D)25
Answer A)5
Explanation:
Profit = Price - Cost= 50q - 5q2
The value of the above expression is maximum at q = 5.
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