Question

if C'(500)=75 and R'(500)=100, should the quantity produced be increased or decreased from q=500 in order to increase profits? if C'(500)=75 and R'(500)=100, should the quantity produced be increased or decreased from q=500 in order to increase profits? @Mathematics

Answer 1

to max profits
R'(q) - C'(q) = 0
call this quantity Q
if q<Q, then R'(q) - C'(q) >0
if q>Q, then R'(q) - C'(q) <0
for q=500
100 - 75 = 25
since 25 >0, assume 500 < Q therefore increase quantity to increase profits