Cost Revenue And Profit Functions Pdf

Revenue function multiply the output level by the price function.

Cost revenue and profit functions pdf. Hence sketch their graphs. To obtain the cost function add fixed cost and variable cost together. If x is the number of units of a product manufactured or sold at a firm then the cost function c x is the total cost of manufacturing x units of the product. The total revenue received from the sale of q goods at price p is given by tc given that fixed costs are 100 and that variable costs are 2 per unit express tc and ac as functions of q.

We have already said that various factors in the. He has to make a lot of effort in the process. Cost and revenue module 3 economics notes producing goods and services 71 8 cost and revenue a producer has to work very hard to produce a good or service. Of up to 150.

2 a business costs include the fixed cost of 5000 as well as the variable cost of 40 per bike. Figure 2 8 500 500 q figure 2 7 tc scpc vc 4 a graph of the average cost function based on this table is sketched in figure 2 8. Linear cost revenue and profit functions. Profit is defined to be revenue minus cost so the profit function is.

Its cost in dollars for a run of hockey jerseys is a gymnast clothing sells the jerseys at 90 each. Find the revenue function. Fixed costs are the costs that remain regardless of the company s activity. Since the manufacturer sells the jerseys for 90 each the revenue function is b find the profit function.