Q.3. A company has marginal revenue function for its product as MR = 20 x - 2 x' and
marginal cost as MC =81 - 16 x + xi. Determine:
1. The profit maximizing output and the profit at the optimum level, assuming fixed cost
as
zero.
2. Show that d'dx (AC) = 1/x (MC- AC).
3. Find the average cost for 7 units of output.
4. Find the marginal revenue when x = 5 and interpret it.
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