Teddy J is a manufacturer of dish washing liquid . If his monthly demand function for 750mlsize is q = 4000 − 250p and his total cost function is C(q) = 500 + 0.2q.(i) Derive an expression, R(q) for Teddy J′s total revenue curve.(ii) Derive an expression, Π(q) for Teddy J's profit function.(iii) Determine whether Teddy J′s profit is increasing or decreasing whenhe produces 5 hundred, 750ml bottles of dish washing liquid.(iv) How many 750ml bottles of dish washing liquid should Teddy J produceper month if he wishes to maximize his profits.thank you for your help Problem 1(a) Teddy J is a manufacturer of dish washing liquid. If his monthly demand function for 750mlsize is q = 4000 – 250p and his total cost function is C(q) = 500 + 0.2q.(i) 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 whenhe produces 5 hundred, 750ml bottles of dish washing liquid.(iv) How many 750ml bottles of dish washing liquid should Teddy J produceper month if he wishes to maximize his profits.

Economic profit is the difference between revenue earned and cost occurred.

Answered: Teddy J is a manufacturer of dish…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 7PA

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Teddy J is 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.
(i) Derive an expression, R(q) for Teddy J′s total revenue curve.
(ii) Derive an expression, Π(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.
(iv) How many 750ml bottles of dish washing liquid should Teddy J produce
per month if he wishes to maximize his profits.

thank you for your help

Problem 1
(a) Teddy J is 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.
(i) 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.
(iv) How many 750ml bottles of dish washing liquid should Teddy J produce
per month if he wishes to maximize his profits.

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