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The Profit Earned by a Producer to Manufacture and Sell nn

Question 83

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The profit earned by a producer to manufacture and sell nn units of a good is given by P(n)=11n2365P(n)=11 n-2365 . The average profit for nn units is given
by A(n)=P(n)nA(n)=\frac{P(n)}{n} .
A) Compute A(1),A(215),A(282)A(1), A(215), A(282) .
B) Interpret the economic significance of the values in part (A).
C) What trend do you notice in the values of A(n)A(n) as nn gets large? Explain this trend in economic terms.

Correct Answer:

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A) blured image
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