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    TUKSst's Avatar
    TUKSst Posts: 2, Reputation: 1
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    #1

    Mar 19, 2011, 07:10 AM
    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.
    galactus's Avatar
    galactus Posts: 2,271, Reputation: 282
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    #2

    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's Avatar
    TUKSst Posts: 2, Reputation: 1
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    #3

    Mar 19, 2011, 08:50 AM
    Comment on galactus's post
    Thanks so much for your help!
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