Answered: 3. Given the total profit and the fixed…

3. Given the total profit and the fixed cost TFC is 40, variable cost are 2 then the total revenue function is T = -Q? + 6Q – 40 Tp = - Q² + 4Q

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 3.4CE

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Concept explainers

Inflation and Purchasing Power Theory

In economic terms, Inflation refers to the increase in the costs of various commodities which are used in daily lifestyle like food, clothes, transport, etc. over a specific time. It may lead to a fall in the purchasing power of the people and also affects the exchange rate of the currency because of the price increase. As the purchasing power falls the unit of the currency in the economy falls. When the prices of the commodities are decreased, then the purchasing power of the consumers will rise, then it will lead to deflation and changes the currency of the base economy to that of the foreign economy which will lead to change in exchange rates.

Question

Please justify answer quickly

3. Given the total profit
and the fixed cost TFC is 40, variable cost are 2
then the total revenue function is
JT = -Q? + 6Q – 40
Tp = - Q? + 4Q
Tp = - Q? - 8Q
|
|
Tp = - Q? + 8Q
|
O Tp = - Q² - 4Q
%3D

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