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View Full Version : How do you get the maximum profits from a cost function?


TUKSst
Mar 19, 2011, 07:10 AM
A farmer is producing strawberries in a perfectly competitive market. His cost function is given by
c(y)= y^2 + 1000
c) Where will the farm maximize profits if the price for a kg of strawberries is R160.

galactus
Mar 19, 2011, 07:29 AM
I assume y is the number of kg produced or sold.

Thus, R=160y

Remember, P=R-C

Profit=Revenue-Cost

TUKSst
Mar 19, 2011, 08:50 AM
Thanks so much for your help!