A firm’s marginal cost and revenue functions are given by MC = 12q2 + 16q + 20 MR = 100 –2q a. Rewrite the above equations as first order differential equations. b. If the firm’s total costs are 3360 when output q = 10 and its total revenue is 0 when q = 0, Solve the ODEs to find the firm’s total cost and total revenue functions. c. Hence derive the firm’s fixed costs.

A firm’s marginal cost and revenue functions are given by MC = 12q2 + 16q + 20 MR = 100 –2q a. Rewrite the above equations as first order differential equations. b. If the firm’s total costs are 3360 when output q = 10 and its total revenue is 0 when q = 0, Solve the ODEs to find the firm’s total cost and total revenue functions. c. Hence derive the firm’s fixed costs.

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

ChapterB: Differential Calculus Techniques In Management

Section: Chapter Questions

Problem 5E

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