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Mining Engineering · Q38

Mine Economics

Engineering and GATE · Mining Engineering · question 38

Q38

A mining industry has the following total cost and total revenue functions: Total cost = TC = 50 + 100q - 6q2 + 1/3 q3 Total revenue = TR = 64q Where q is the output of mine in tonne/day The profit will be maximized for what level of production?

A mining industry has the following total cost and total revenue functions:
Total cost = TC = 50 + 100q - 6q2 + q3
Total revenue = TR = 64q
Where q is the output of mine in tonne/day
The profit will be maximized for what level of production?
A.
4
B.
6
Answer
C.
8
D.
10

Answer: Option B

Solution

Answer: Option B
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