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The marginal cost of production of a firm is given as C'(Q) = 5+ 0.13Q. Also, the marginal revenue is R'(Q) = 18. It is given that the initial fixed cost is Tk. 120. Compute the total profit.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter4: Extent (how Much) Decisions

Section: Chapter Questions

Problem 4MC

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Question

A company producing two different goods of quantities m and n

The marginal cost of production of a firm is given as C'(Q) = 5 + 0.13Q. Also, the marginal
revenue is R'(Q) = 18. It is given that the initial fixed cost is Tk. 120. Compute the total profit.

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