Let and be the cost function and the revenue function for units of a commodity such that marginal cost of producing 2 units is equal to marginal revenue of selling 1 unit. If and , then which one of the following is TRUE?
Let and be the cost function and the revenue function for units of a commodity such that marginal cost of producing 2 units is equal to marginal revenue of selling 1 unit. If and , then which one of the following is TRUE?
Solution
✅ Correct Option: 3
and .
Setting : .
This gives , i.e. , so .
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