Posted by **Anonymous** on Monday, January 11, 2010 at 4:11pm.

The revenue and cost functions for the housing developer are:

C(n) = 8 + 0.065n

R(n) = 1.6 √n

Suppose that the developer found a way to reduce her variable cost to $58 000 per house. How would this affect:

i) the minimum and maximum number of houses she could build?

ii) her maximum potential profit?

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