Question: In Problem cost, revenue, and profit are in dollars and x is the number of units.
A certain firm's marginal cost for a product is (MC)‾ = 6x + 60, its marginal revenue is (MR)‾ = 180 - 2x, and its total cost of production of 10 items is $1000.
(a) Find the optimal level of production.
(b) Find the profit function.
(c) Find the profit or loss at the optimal level of production.
(d) Should production be continued for the short run?
(e) Should production be continued for the long run?