What is the optimal numbers of towers to build

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A cell phone company is considering investing in additional cell phone towers. It estimates that if it builds K towers, its benefit in terms of increased profits will be: B(K)=500K-K^2 in millions. Assume each tower costs $20 million to build. Answer the following questions:

A. What is the total cost, C(K), of building K towers?

B. What is the optimal numbers of towers to build?

Reference no: EM13180000

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