The total revenue curve of a firm is R(q) = 40q − 12q and its average cost A(q) =1÷30 q2− 12.85q + 20 + 400÷q, where q is the firm s output. Derive an expression C(q) for the firm s total cost function. Derive an expression Π(q) for the firm s profit function. Is the rate of change of profit increasing or decreasing when the output level of the firm is 10 units?
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
- The total revenue curve of a firm is R(q) = 40q − 12q and its
average cost A(q) =1÷30 q2− 12.85q + 20 + 400÷q, where q is the firm s output.
- Derive an expression C(q) for the firm s total cost function.
- Derive an expression Π(q) for the firm s profit function.
- Is the rate of change of profit increasing or decreasing when the output level of the firm is 10 units?
- Determine the level of output for which the firm s profit is maximized.
- What is the firms s maximum profit?
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