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The market demand function of a firm is given by
4P + Q - 16 = 0
And the AC function takes the form
AC = 4/Q + 2 - 0.3Q + 0.05Q2
Find the Q which gives:
(a) Maximum revenue
(b) Minimum marginal costs,
(c) Maximum profit
Use the second derivative test in each case.
Average product and marginal product: Average product (AP) is the output per unit of the variable factor employed. In other words, it is the productivity of the variable facto
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