A Jeweler is considering producing a limited edition diamond bracelet, and she i

Question

A Jeweler is considering producing a limited edition diamond bracelet, and she is trying to decide how many bracelets to produce. The table gives her estimated total cost for various (a) Of the production levels listed in the table, which gives the highest profit? (b) Estimate the marginal cost and marginal revenue when 400 bracelets are made. marginal cost $ marginal revenue $ (c) According to the estimates in part (b), will increasing the production level higher than 400 bracelets increase profit? Yes, increasing production will increase profit. No, increasing production will not increase profit. For the given cost and demand functions, find the production level that will maximize profit. C(q) = 690 + 5q + 0.02q^2, p = 11 - q/300 units The demand function for a company's product is p = 26e^-6.2 where q is measured in thousands of units and p is measured in dollars. (a) What price should the company charge for each unit in order to sell 3500 units? $ (b) If the company prices the products at $6.50 each, how many units will sell? units

Explanation / Answer

a) 400

b) Marginal cost = (1015-820)/100= 1.95

   Marginal revenue = (4300-5100)=-800

c) No will not increase profit

d--------------------------

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