GATE | GATE CS 2012 | Question 56
The cost function for a product in a firm is given by 5q2, where q is the amount of production. The firm can sell the product at a market price of Rs 50 per unit. The number of units to be produced by the firm such that the profit is maximized is
Profit = Price - Cost = 50q - 5q2 The above function will be maximum for the values on which its first derivative becomes 0. 50 - 10*q = 0 50 = 10 * q q = 5. The value of above expression is maximum at q = 5.
Attention reader! Don’t stop learning now. Practice GATE exam well before the actual exam with the subject-wise and overall quizzes available in GATE Test Series Course.
Learn all GATE CS concepts with Free Live Classes on our youtube channel.