The utility function of a firm is given by U(q) = -q2 + 80q + 25,300 (dollars). Determine the maximum utility.
Question
Answer:
$$ U^{\prime}\left(q\right)=\frac{d}{dq}(-q^2+80q+25300) $$
$$ U^{\prime}\left(q\right)=-2q+80 $$
U'(q)=0
-2q+80=0
q=40
$$ U^{\doubleprime}\left(q\right)=-2>0 $$
Maximum Utility,
$$ U\left(40\right)=-2\cdot40^2+80\cdot40+25300=25300 $$
solved
general
11 months ago
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