Total Revenue Function Formula

Units are selling at 20 per unit and 400 sell.

Total revenue function formula. Total revenue is 8 000. For example you could write something like p 500 1 50q. However in most other types of market which would be generally called imperfectly competitive markets p depends inversely on q. Total cost and total profit functions from given.

Total revenue price x quantity. In symbols π r c p q f v q. Regarding the total revenue function only in a perfectly competitive market p is obtained to be a constant independent of the firm s quantity sold q. Use 2nd calc intersect to find their coordinates and round to the nearest integer as needed.

Quantity is the number of units sold. Formula how to calculate total revenue. Suppose a market has a demand function of qd 20 0 5p. The graph shows two points where the linear cost function and the parabolic revenue function intersect.

C 40 000 0 3 q where c is the total cost. Since profit is the difference between revenue and cost the profit functions the revenue function minus the cost function. After some research a company found out that if the price of a product is 50 dollars the demand is 6000. However if the price is 70 dollars the demand is 5000.

Price is the price each unit sells for. Note we are measuring economic cost not accounting cost. Then you will need to use the formula for the revenue r x p x is the number of items sold and p is the price of one item. This video explains how to find the total revenue total cost and total profit functions from given information and the demand function.

The equation for the cost function is. Write a formula where p equals price and q equals demand in the number of units. π r c 1 2 q. To calculate maximum revenue determine the revenue function and then find its maximum value.

Enjoy the videos and music you love upload original content and share it all with friends family and the world on youtube. Find the revenue function. At which of the following prices will total revenue be maximized.