A company sells its product at 60 OMR per unit. Fixed cost for the company is 18000 OMR and the variable cost is estimated to be 25 % of total revenue. Find: a) the total revenue function. b) the total cost function.

A company sells its product at 60 OMR per unit. Fixed cost for the company is 18000 OMR and the variable cost is estimated to be 25 % of total revenue. Find: a) the total revenue function. b) the total cost function.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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Question

A company sells its product at 60 OMR per unit. Fixed cost
for the company is 18000 OMR and the variable cost is
estimated to be 25 % of total revenue.
Find:
a) the total revenue function.
b) the total cost function.

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