How Do You Find Revenue Function From Demand Function

X 50p 8500 is the demand equation and it depends on the price.

How do you find revenue function from demand function. The price is given as a function of the number demanded. In this video we maximize the revenue from a linear demand function by. To calculate it you need at least two data pairs that show how many units are bought at a particular price. Demand and total revenue.

To find the revenue function use r x p. If your operation costs 950 per week to run and each item costs 6 00 to process find the revenue function cost function and profit function using the demand equation below. 5000 3500 3500 3500 b. Demand revenue cost profit demand function d q p d q in this function the input is q and output p q independent variable p dependent variable recall y f x p d q the price at which q units of the good can be sold unit price p most demand functions quadratic project 1 demand curve which is the graph of d q is generally downward sloping why.

In its simplest form the demand function is a straight line. In this case marginal revenue is equal to price as opposed to being strictly less than price and as a result the marginal revenue curve is the same as the demand curve. Revenue is product of demand and number of items. Demand is the relationship between the price of a good or service and the quantity demanded.

To find p use x 50p 8500 to solve for p. This situation still follows the rule that the marginal revenue curve is twice as steep as the demand curve since twice a slope of zero is still a slope of zero. How do you find the revenue function from the demand equation. X 8500 50p 8500 8500.

To find the revenue function. Find the break even quantities. R q p q p 1000 frac1 80 q r q 1000 frac1 80 q q 1000q frac1 80 q 2 i believe this is right. Now to find the level of production to maxime revenue we must find the first derivative of the revenue function.

X 50p 8500. X 8500 50p. In this video we maximize the revenue from a linear demand function by finding the vertex of a quadratic function. X 50p 8500.

That may seem a bit odd but the function works either way. So far this is what i got for the cost and revenue function.