Question 1:
(a) Estimate the marginal cost and marginal revenue when 1400 units are produced. At this level, should production be increased?
Yes, production should be increased.
No, production should not be increased.
(b) Estimate the production level that maximizes profit for the company.
Question 2:
A car-detailing service estimates that its daily cost of waxing q cars is
C(q) = 0.09q2 + 39q + 380.
If the service collects $55 for each car waxing, find the number of cars the service should wax daily in order to maximize profit.
Write an equation for a cost function where the fixed costs are $1800 and the variable costs are $5 per unit.