Determine values at the profit-maximizing activity level

Reference no: EM13124348

Commercial Recording, Inc. is a manufacturer and distributor of reel to reel recording decks for commercial recording studios.Revenue and cost Relations are:

TR= $3,000Q-$0.5Q^2

MR= (Delta Symbol) TR/ (Delta Symbol) Q=$3,000-$0.3Q

TC=$100,000+$100Q + $0.1Q^2

MC= (Delta Symbol)TC/(Delta Symbol)Q=$1,500 + $0.2Q

A. Calculate output, marginal cost, averagecost, price and profit at the average cost-minimizing activity level.

B.) Calculate these values at the profit-maximizing activity level.

C.) Compare and discuss your answers to parts A and B

Reference no: EM13124348

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