Linear Revenue Function Equation

R p q will be r 1 5 q where r is the revenue and q is the number of units sold.

Linear revenue function equation. Is a revenue function. If we assume ice cream bars will be sold for 1 50 apiece the equation for the revenue function the product of the price per unit times the number of units sold. Revenue the revenue resulting from one or more business transactions is the total payment received sometimes called the gross proceeds. 2x 6y 60 5x 3y 120 a linear programming problem consists of a both the objective function subject to restraints.

In this video we maximize the revenue from a linear demand function by finding the vertex of a quadratic function. If the demand price is a linear function then revenue is a quadratic function. It has a variable cost of 25 per item and a fixed. If r x is the revenue from selling x items at a price of m each then r will be the linear function r x mx and the selling price m can also be called the marginal revenue.

P x r x c x x the number of items produced and sold. An objective function is max p x y 3x 2y or min c x y 4x 8y constraints are. If the slope of the demand curve is 0 the consumers have a fixed price they will pay for however much of the product is available. A linear programming problem consists of an objective function subject to a system of constraints example of what they look like.

Algebra linear equations solution. Write a linear equation for both cost and revenue. X 50p 8500 is the demand equation and it depends on the price. In this video we maximize the revenue from a linear demand function by.

It has fixed costs of 2 500. A company receives 45 for each unit of output sold. P x is a profit function. R x selling price number of items sold profit equals revenue less cost.

We should note the two limiting cases. A store can purchase shirts for 7 each. Each shirt is sold for 18. Graph both cost li log on.

A simple example of a linear equation.