Your team discussion should center on how knowledge of first and second derivatives can be used to find the profit (or revenue) maximizing output and the cost minimizing output.
In order to Maximize profit
TR(Total Revenue) - TC(Total Cost) = Profit , label it as equation(1)
Find the Derivative of the equation (1) and label it as equation (2)
Now put equation (2) equal to Zero to find critical point
Find Second Derivative using equation(2) and put value of x we found in Third step
If the result is less than Zero it means profit is Maximized at that value of x or we can say at units of output.
Cost minimizing output
Find the derivative of TC(Total cost) function
Put the equation after derivative equal to zero to find critical point
Find Second Derivative of the equation and put in it value of x we found in second step
If the result is more than Zero ,it mean total cost is Minimized at that units of output.
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