the demand equation for a monopolist's product is P=(500)/(√Q), where P is the price per unit (in dollars) for Q units. if the total cost (in dollars) of producing Q units is given by C=5(q)+2000, then the level of production at which profit is maximized is... (a)50 units (b)100 units (c)75 units (d)1,235 units (e)2,500 units ??!?!?!?!?

Question

dumbcow · Answer

profit = revenue - cost
revenue = price*quantity = P*Q

--> Profit(Q) = 500Q/sqrtQ - 5Q-2000
to maximize, differentiate and set equal to 0
solve for Q

dumbcow · Answer

you can simplify
500Q/sqrtQ = 500sqrtQ

anonymous · Answer

Does that mean its e? :S

dumbcow · Answer

yes it does

anonymous · Answer

sorry lol but i understand now what you meant :)

dumbcow · Answer

:)