Math Problem Statement
If fixed costs are $350, what is the profit at the optimal integer output level?
Please specify your answer as an integer.
Solution
To find the profit at the optimal integer output level , we use the profit function:
Substitute into the profit function:
The profit at the optimal integer output level of 5 units is -255 dollars.
Do you want more details or have any questions?
- What factors can lead to a negative profit even at the optimal output level?
- How does a negative profit affect business decisions in the short term?
- What would be the break-even point given the fixed and variable costs?
- How does the steepness of the marginal cost curve affect profit?
- What are potential strategies to convert a negative profit into a positive one?
- How does changing the selling price to $50 per unit affect profit at the same output level?
- Could reducing fixed costs lead to a positive profit, and by how much?
- What are the implications of selling fewer units than the optimal output level?
Tip: Always check if external factors like changes in market demand could impact your pricing strategy and profitability.
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Math Problem Analysis
Mathematical Concepts
Profit function
Quadratic equations
Formulas
Profit function: \( \Pi(q) = -4q^2 + 39q - 350 \)
Theorems
-
Suitable Grade Level
Undergraduate level
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