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-   -   How do you get the maximum profits from a cost function? (https://www.askmehelpdesk.com/showthread.php?t=563450)

  • Mar 19, 2011, 07:10 AM
    TUKSst
    how do you get the maximum profits from a cost function?
    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.
  • Mar 19, 2011, 07:29 AM
    galactus

    I assume y is the number of kg produced or sold.

    Thus, R=160y

    Remember, P=R-C

    Profit=Revenue-Cost
  • Mar 19, 2011, 08:50 AM
    TUKSst
    Comment on galactus's post
    Thanks so much for your help!

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