Example 7: We used concepts learned in past modules ( 2 and 3 ) to answer new questions.
A company is planning to manufacture toasters. Market research suggests the company can sell 200 toasters per week at a price of $16 each or 300 toasters per week at a price of $14 per toaster. Financial research suggests the fixed cost per week is $1,400 and the marginal cost per unit produced is $4.
Answer the questions on the back.
a. Find the linear demand curve p=f(q). J=20-0.02Q
b. Find the revenue function R=f(q). T=20Q-0.02Q^(?)
c. Find the linear cost function C(q). C=1400+4Q
d. Graph the cost and revenue functions on the same graph. Indicate break-even points (100 and 700) and regions of loss and profit. Use the space on the other side.
e. Find the profit function P(q). ◻ 16Q-0.02Q^(2)-140r q,
f. Calculate the additional profit earned from selling q=250 ◻ 6.02 and q=475,-2.98
g. What quantity of toasters should be produced? ◻
Example 7: We used concepts learned in past modules(2 and 3)to answer new questions.
A company is planning to manufacture toasters. Market research suggests the company can sell 200 toasters per week at a price of $16 each or 300 toasters per week at a price of $14per toaster. Financial research suggests the fixed cost per week is $1,400 and the marginal cost per unit produced is $4 Answer the questions on the back. a.Find the linear demand curve p=f(q) P=20-0.02Q b.Find the revenue function R=f(q. R=20Q-0.02Q c.Find the linear cost function Cq. C=1400+4Q d. Graph the cost and revenue functions on the same graph. Indicate break-even points (100 and 700) and regions of loss and profit. Use the space on the other side. e.Find the profit function P(q) 16Q-0.02Q-1400 f.Calculate the additional profit earned from selling q = 250 6.02 .and q=475-2.98 g.What quantity of toasters should be produced? 400