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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
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- 5
- 10
- 15
- 25
- 5
Correct Option: A
p = 50q – 5q2
| ∴ | = 50 - 10q | |
| dq |
| < 0 | ||
| dq2 |
Hence p is maximum at 50 – 10q = 0 or q = 5 Alternately check with options.
