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The cost function for a product in a firm is given by 5q2 [i.e,5(q*q)],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? (A) 5 (B) 10 (C) 15 (D) 25

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Post your answer along with explanationAnswer is A. The equation for profit is Profit=SP-CP, here SP=Q*50 and CP=5Q^2 so when a function attains its maximum value its first order differentiation is zero. Hence 50-5*2*Q=0. therefore Q=5.