A manufacturer has a monthly fixed cost of $60,000 and a production cost of S10 for each unit produced. The product sells for $15/unit. 1)What is the cost function? 2)What is the revenue function? 3)What is the profit function?
- A manufacturer has a monthly fixed cost of $60,000 and a production cost of S10 for each unit produced. The product sells for $15/unit.
1)What is the cost function?
2)What is the revenue function?
3)What is the profit function?
4)Compute the profit (loss) corresponding to production levels of 10,000 and 14,000 units.
5)How many units should the firm produce in order to realize a minimum monthly profit of $5000?
6)How many units must be sold to break even?
There is no demand for a certain make of one-time use camera when the unit price is $ 12. However, when the unit price is $ 8, the quantity demanded is 8000/week.
The supplier will not market any cameras if the unit price is $ 2 or lower. At $ 4/camera, however, the manufacturer will make available 5000 cameras/week.
Given that both the supply and demand equations are linear:
- Determine the associated linear demand function
Determine the linear supply function.
At what price should the camera be sold so that there is neither a surplus nor a shortage?
- How many units should the firm produce in order to realize a minimum monthly profit of $5000?
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