Purchase Solution

Maximum Profit and Minimum Average Cost

Not what you're looking for?

Ask Custom Question

You are given the function p(q) at which q units of a particular commodity can be sold and the total cost c(q) of producing the q units: In each case

A) Find:
Revenue Function R(q), the profit function P(q), the marginal revenue R'(q), and the marginal cost C'(q). Sketch the graphs of p(q), R'(q), and C'(q) on the same coordinates axes and determine the level of production q where P(q) is maximized.

B) Find:
Average Cost A(q)=C(q)/q and sketch the graphs pf A(q), and the marginal cost C'(q) on the same axes. Determine Level of Production q at which A(q) is minimized.

Given Functions:

1.p(q)=37-2q;C(q)=3q^2+5q+75

2.p(q)=710-1.1q^2;C(q)=2q^3-23q^2+90.7q+151.

Purchase this Solution
Solution Summary

Step-by-step solution to the maximum profit and minimum average cost is provided in the solution.

Solution provided by:
Sandhya Sharma, MSc
Education
  • BSc, Meerut University
  • MSc, Meerut University
  • MPhil, Institute of Advanced Studies
  • MSc, AIT
Recent Feedback
  • "Perfect, thank you so much!!! I will definitely request you in the future! You are amazing!"
  • "Thank you. "
  • "Thank you so much I have two more that I need your help with if your available."
  • "Thank you, I was wondering why you rejected me the first time."
  • "Thanks again."
Purchase this Solution
Free BrainMass Quizzes
Geometry - Real Life Application Problems

Understanding of how geometry applies to in real-world contexts

Solving quadratic inequalities

This quiz test you on how well you are familiar with solving quadratic inequalities.

Probability Quiz

Some questions on probability

Know Your Linear Equations

Each question is a choice-summary multiple choice question that will present you with a linear equation and then make 4 statements about that equation. You must determine which of the 4 statements are true (if any) in regards to the equation.

Multiplying Complex Numbers

This is a short quiz to check your understanding of multiplication of complex numbers in rectangular form.

View More Free Quizzes
Related BrainMass Solutions

  • Cost Function : Average Cost, Revenue and Profit - Maximum or Minimum

    51370 Cost Function : Average Cost, Revenue and Profit - Maximum or Minimum Given the cost function C(q) = 4000 + 50q + 0.002q2 and the demand function p = 80 - 0.025q, find the value of q for which: (a) Average cost is a minimum.

  • Demand, Supply, Cost, Average Cost and Marginal Cost

    iii)Determine the price and quantity for maximum profit and calculate the maximum profit.

  • minimizing the average cost

    The firm's cost structure is given by: TC={(1/3Q)^3}-{(100Q)^2}+20,000Q Calculate the average cost-minimizing level of output and demonstrate that this level of output is at minimum average cost. Call this output level Qmin.

  • Revenue and Cost Calculations

    What is the average cost per saw at maximum profit? Average cost = C(x)/x=(7200+60x)/x=7200/x+60. When x=2100 by part f, average cost=7200/2100+60=64 h. What is the maximum profit? Since by part d, Profit function P(x) =140x - x^2/30 - 7200.

  • Application of Derivatives Maximum Revenues

    38089 Application of Derivatives Maximum Revenues Find the number of units x that produce a maximum revinue R. R=800x-0.2x^2 R=48x^2-0.2x^3 Find the number of unites x that produce the minimum average cost per unit C.

  • Calculus used to find marginal profit and critical values

    Use calculus to find the minimum of the average cost function. c. Graph the average cost function. 6.

  • You are the manager of a monopolistically competitive firm

    is equal to average revenue, and profit will be zero.

  • CVP analysis and Decision theory

    Hurwicz (a = .4) Select the alternative that has the minimum weighted average of its maximum and minimum costs; the weight of the minimum cost is a i.e. 0.4 , referred to as the coefficient of optimism, and the weight of the maximum cost is (1-

  • Profit Max

    Which rectangle correctly indicates Total Profit earned at this quantity? a. BQJO b. BQVD c. DVJO d. BPHO 11. A firm should shut down whenever: a. Price falls below minimum average variable cost.

View More Related Solutions