contestada

Let us again consider the monopoly Sreeb but assume it's profit function is:

POs = (370 - Q)Q

What level of diamond production Q does Sreeb choose? Round your answer to one decimal place if necessary.

Respuesta :

oladayoademosu

The level of diamond production sreeb chooses is Q = 185.

We know the profit function is POs = (370 - Q)Q. We need to find the level of diamond which is going to produce maximum profit. This is obtained when we differentiate POs with respect to Q and then equate it to zero.

So, dPOs/dQ = d(370 - Q)Q/dQ

= 370 - Q - Q

= 370 - 2Q

Let us equate this to zero.

So, dPOs/dQ = 0

⇒ 370 - 2Q = 0

Adding 2Q to both sides, we have

370 = 2Q

Dividing through by 2, we have

Q = 370/2

Q = 185

The level of diamond production Sreeb chooses is Q = 185.

Learn more about profit function here:

https://brainly.com/question/23560417

Otras preguntas