Project ForgeGeneral Aptitude
Quantitative Aptitude
GATE 2012
Medium
The cost function for a product in a firm is given by 5q^2, where q is the amount of production. The firm can sell the product at a market price of ₹50 per unit. The number of units to be produced by the firm such that the profit is maximized is
- 5
- B10
- C15
- D25
Explanation
Profit(q) = Revenue - Cost = 50q - 5q^2. Maximizing: d(Profit)/dq = 50 - 10q = 0, so q = 5. The second derivative -10 is negative, confirming a maximum.
Source: GATE CS 2012 (2012)
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