The total revenue curve of a firm is R(q) = 40q – 12q2 and its average cost A(q) =(1/30q2 − 12.85q + 20 + 400/q ,where q is the firms output. i. Derive an expression C(q) for the firms total cost function.
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.
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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
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The total revenue curve of a firm is R(q) = 40q – 12q2 and its average cost A(q) =(1/30q2 − 12.85q + 20 + 400/q ,where q is the firms output.
i. Derive an expression C(q) for the firms total cost function. ii. Derive an expression Π(q) for the firms profit function. iii. Is the rate of change of profit increasing or decreasing when the ouput level of the firm is 10 units? iv. Determine the level of output for which the firms profit is maximized. v. What is the firmss maximum profit?
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