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Problem

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Textbook Expert
Textbook ExpertVerified Tutor
19 Nov 2021

Given information

1. The profit  is a maximum. 

2.  is the cost function

3. is the demand function

Step-by-step explanation

Step 1.

Profit function is given by

Therefore 

Now will always give us the local maxima, as with increase in production units the rate of change in profit is supposed to reach a peak and then flatten out. 

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