(a) Teddy Jis a manufacturer of dish washing liquid. If his monthly demand function for 750ml size is q = 4000 – 250p and his total cost function is C(q) = 500 + 0.2q. (1) Derive an expression, R(q) for Teddy J's total revenue curve. (ii) Derive an expression, I(q) for Teddy J's profit function. (iii) Determine whether Teddy J's profit is increasing or decreasing when he produces 5 hundred, 750ml bottles of dish washing liquid.

Question
(a) Teddy Jis a manufacturer of dish washing liquid. If his monthly demand function for 750ml
size is q = 4000 – 250p and his total cost function is C(q) = 500 + 0.2q.
(1) Derive an expression, R(q) for Teddy J's total revenue curve.
(ii) Derive an expression, I(q) for Teddy J's profit function.
(iii) Determine whether Teddy J's profit is increasing or decreasing when
he produces 5 hundred, 750ml bottles of dish washing liquid.

Image Transcription

(a) Teddy Jis a manufacturer of dish washing liquid. If his monthly demand function for 750ml size is q = 4000 – 250p and his total cost function is C(q) = 500 + 0.2q. (1) Derive an expression, R(q) for Teddy J's total revenue curve. (ii) Derive an expression, I(q) for Teddy J's profit function. (iii) Determine whether Teddy J's profit is increasing or decreasing when he produces 5 hundred, 750ml bottles of dish washing liquid.

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