Revenue Function Demand Equation

5000 3500 3500 3500 b.

Revenue function demand equation. Find the maximum revenue for the demand equation eq q 5x 130 eq. To find the revenue function use r x p. To find p use x 50p 8500 to solve for p. X 50p 8500.

In this video we maximize the revenue from a linear demand function by. In this video we maximize the revenue from a linear demand function by finding the vertex of a quadratic function. 5000 3500 b. X 50p 8500 is the demand equation and it depends on the price.

Revenue is product of demand and number of items. The revenue function shows the maximum income a firm can obtain from selling a given quantity of its. B what is the revenue if 20 units are sold. Figure 2 shows a graph of the average cost function.

X 8500 50p 8500 8500. For the ice cream bar venture the equation for this function would be ac c q 40 000 0 3 q q 0 3 40 000 q. Plug one ordered data pair into the equation y mx b and solve for b the price just high enough to eliminate any sales. In the example using the first ordered pair gives 2 50 0 25 10 quarts b.

Demand equation the price p and the quantity x sold of a certain product obey the demand equation x 20p 500 0 p 25 a express the revenue r as a function of x. Note that the average cost function starts out very high but drops quickly and levels off. When we compare this example inverse demand curve top and the resulting marginal revenue curve bottom we notice that the constant is the same in both equations but the coefficient on q is twice as large in the marginal revenue equation as it is in the demand equation.