Cost Revenue And Profit Maximization Worksheet Answers

Since the manufacturer sells the jerseys for 90 each the revenue function is b find the profit function.

Cost revenue and profit maximization worksheet answers. A resource to give students practice at calculating revenue costs and profit. Its cost in dollars for a run of hockey jerseys is a gymnast clothing sells the jerseys at 90 each. Assume that price is 20 per frying pan. Cost of production that does not change when output changes.

Use your textbook to answer the following questions pg. This is the total income a firm receives. The following graph shows jake s total cost curve. To obtain the cost function add fixed cost and variable cost together.

Use the blue points circle symbol to plot total revenue and. A business expense that is not dependent on the level of goods or services produced. 3 the profit a business makes is equal to the revenue it takes in minus what it spends as costs. Terms in this set 11 fixed cost.

Provide examples where indicated. We were particularly interested in the point of market equilibrium. Remember the rules you will not leave the class until you have shown me what you have completed measures of cost 1. Revenue function multiply the output level by the price function.

Cost revenue and profit maximization. Use the table below to answer questions 1 3. 2 a business costs include the fixed cost of 5000 as well as the variable cost of 40 per bike. 4 9 31 customer reviews.

Link to worksheets used in this section. A resource to give students practice at calculating revenue costs and profit. Jackie s accounting profit is. Marginal revenue is the change in revenue which comes from selling an additional unit of.

If the cost per item is fixed it is equal to the cost per item c times the number of items produced x or c x c x. Section 2 2 modeling revenue costs and profit. Profit is defined to be revenue minus cost so the profit function is. More resources available from www justifiedresources co uk.

In the last section we looked at the economic model for supply and demand. In this section we will look at the model for revenue cost and profit. Identify and define the four key measures of cost. Find the revenue function.

Number of games total benefit 0 0 1 050 2 190 3 120 2 4 140 5 152 6 5160. Total revenue 5 000. Solving problems involving cost revenue profit the cost function c x is the total cost of making x items. Refers to the total expense incurred in reaching a particular level of output.

Costs and profit question sheet with answers. 5 3 cost revenue and profit maximization reading notes directions. Profit and profit maximization. If such total cost is divided by the quantity produced average or unit cost is obtained.

The only cost that her accountant would add into. The price function p x also called the demand function describes how price affects the number of items sold.