How Do You Find The Revenue Function From Demand Function

In its simplest form the demand function is a straight line.

How do you find the revenue function from demand function. X 50p 8500. X 8500 50p. 5000 3500 3500 3500 b. X 8500 50p 8500 8500.

The price is given as a function of the number demanded. In this video we maximize the revenue from a linear demand function by finding the vertex of a quadratic function. R q 1000 2 frac1 80 q 2 frac1 80 q 1000 frac1 80 q 500 q 40000 input this into our demand function. Manufacturers interested in maximizing revenues use the function to help set production levels that yield the most profits.

To find p use x 50p 8500 to solve for p. To find the revenue function use r x p. 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. Now to find the level of production to maxime revenue we must find the first derivative of the revenue function.

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. 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. To find the revenue function. 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.

Demand and total revenue. To calculate it you need at least two data pairs that show how many units are bought at a particular price. X 50p 8500. Economists and manufacturers study demand functions to see the effects of different prices on the demand for a product or service.

That may seem a bit odd but the function works either way. Revenue is product of demand and number of items. 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. How do you find the revenue function from the demand equation.

You might think that the number purchased should be a function of the price input a price and find out how many items people will buy at that price but traditionally a demand function is done the other way around. In this video we maximize the revenue from a linear demand function by. So far this is what i got for the cost and revenue function.