Total Revenue Function Problems

Determine a function for the total cost of a ticket in terms of the mileage and find the airfare for flying 1600 miles.

Total revenue function problems. The relationship between average cost and quantity is the average cost function. Figure 2 shows a graph of the average cost function. X cookie is the number of cookies sold. A bag of biscuits sells for rm 1 80.

R 0 50 x lemonade 1 00 x cookie. P 28 0 0008q mr 28 0 0016q tc 120 000 0 00062. P i is the price for the item. More formally marginal revenue is equal to the change in total revenue over the change in quantity when the change in quantity is equal to one unit.

If the lemonade stand also sold cookies for 1 apiece the revenue function would be. The total cost of airfare on a given route is comprised of the base cost c and the fuel surcharge s in rupee. An equivalent approach is to find the value of q where the revenue function and cost function have identical values. It is possible to represent marginal revenue as a derivative.

Economic planner hired a year before has generated the demand marginal revenue total cost and marginal cost functions given below. One is to solve for the value of q that makes the economic profit function equal to zero. X lemonade is the number of lemonades sold. 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.

Both c and s are functions of the mileage m. Calculating the cost function. 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. The resulting marginal revenue function is mr q 50 q.

It is the total income of a company and is calculated by multiplying the quantity of goods sold. Example if the total revenue function of a. Given that x represents the number of bags of biscuits sold a find i cost function c x c x ii revenue function r x iii profit function p x b calculate the daily profit if the factory sells 1200 bags of biscuits daily. However if the price is 70 dollars the demand is 5000.

Total revenue in economics refers to the total sales of a firm based on a given quantity of goods. After some research a company found out that if the price of a product is 50 dollars the demand is 6000. Find the revenue function. X i is the number of items sold.

C m 0 4m 50 and s m 0 03m. R p 1 x 1 p 2 x 2 p n x n where. Mr d tr dq. Solving problems involving cost revenue profit the cost function c x is the total cost of making x items.

0 1 2 q 40 000 or q 40 000 1 2 33 334 units. If the cost per item is fixed it is equal to the cost per item c times the number of items produced x or c x c x. The price function p x also called the demand function describes how price affects the number of items sold. In addition the revenue per unit sold is.