Answer to Question #248513 in Microeconomics for sourabh

Question

Given C =

𝑥3

3

– 3x2 + 9x + 16 and R = 21x – x2, does the producer sell in a

monopolistic or a competitive market ? Find the output for maximum revenue. What

is the maximum value of R?

Answer 1

$$C=x^3-3x^2+9x+16$$

$$MC=3x^2-6x+9$$

$$R=21x-x^2$$

$$MR=21-2x$$

$$MR=MC$$

$$x=1.4$$

$$R=27.44$$