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Application of differential calculus in economics: Profit, Cost and Revenue function.
The total cost C(q) = of production goods as given by,
C(q) = 0.01q3 - 0.6q2 + 13q
(a) What is the fixed cost?
(b) What is the maximum profit if each item is sold for $7? (Assume you sell every thing you produce.)
(c) Suppose exactly 34 goods are produced. They all sell when the price is $7 each, but for each $1 increase in price, 2 fewer goods are sold. Should the price be raised, and if so by how much?
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