GFU Insurance Company offers mail-order car insurance to preferred-risk drivers in the New York city. The company is the cheap provider of insurance in this market but doesn’t believe its annual premium of $2,500 can be raised for competitive reasons. Rates are expected to remain stable during coming periods; hence, P = MR = $2,500. Total and marginal cost relations for the company are as follows:
TC = $100,000 + $100Q + $0.006 Q2
MC = ∂TC/∂Q = $100 + $0.012Q
The profit maximizing activity level, and the profit at this activity level would be?
Numbers and figures are an essential part of our world, necessary for almost everything we do every day. As important…
APPROVED BY CLIENTS
"assignmentexpert.com" is professional group of people in Math subjects! They did assignments in very high level of mathematical modelling in the best quality. Thanks a lot
Comments
Leave a comment