Marginal Profit – Knowsia

QMDDM – OCT 2022 – L2 – Q4 – Revenue Cost Profit Optimization

Given total revenue TR = -14x² + 2000x and total cost TC = x³ - 15x² + 1000 functions, explain marginal and average concepts, and calculate production levels to maximize revenue, minimize cost, maximize profit, with comments.

Question

The total revenue and total cost for a product are related to production x by:

2 14 2000 TR X X

− +

3 2 15 1000 TC X X

− +

(a) Explain briefly (in your own words) the following terms in relation to the total revenue

and total cost above: (i) Marginal Cost (ii) Marginal Revenue (iii) Marginal Profit (iv) Average Revenue

(b) Calculate, how many units should the company produce in order to

(i) Maximize total revenue (ii) Minimize cost (iii) Maximize profit. (iv) Comment on (i), (ii) and (iii) above.

Answer

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Tags: average revenue, Business Economics, calculus applications, Cost Minimization, Marginal Cost, Marginal Profit, Marginal Revenue, Optimization, Profit Maximization, Revenue Maximization
Level: Level 2

QT – Nov 2017 – L1 – Q6b – Elements of Calculus

Calculate marginal cost, revenue, and profit for a company’s production of beverage cans.

Question

Kyerewaa Ventures is a manufacturing company in the business of producing beverage cans for clients in the brewery industry. The weekly total cost to produce $x$ cans is given by:

The demand function for the cans is given by:

$P (x) = 200 - 0.005 x$

The company has set a production limit to 10,000 cans and it sells all the cans that are produced.

Required:
i) Derive an expression for marginal cost, marginal revenue, and marginal profit. (4 marks)
ii) Determine the cost, revenue, and profit when the 2,501st can is produced and sold. (3 marks)
iii) Determine the cost, revenue, and profit when the 7,501st can is produced and sold. (3 marks)
iv) Advise the company whether to produce the 2,501st can or the 7,501st can. (2 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Function, Marginal Cost, Marginal Profit, Marginal Revenue, Optimization, Revenue Function
Level: Level 1

Series: NOV 2017

QMDDM – OCT 2022 – L2 – Q4 – Revenue Cost Profit Optimization

Given total revenue TR = -14x² + 2000x and total cost TC = x³ - 15x² + 1000 functions, explain marginal and average concepts, and calculate production levels to maximize revenue, minimize cost, maximize profit, with comments.

Question

The total revenue and total cost for a product are related to production x by:

2 14 2000 TR X X

− +

3 2 15 1000 TC X X

− +

(a) Explain briefly (in your own words) the following terms in relation to the total revenue

and total cost above: (i) Marginal Cost (ii) Marginal Revenue (iii) Marginal Profit (iv) Average Revenue

(b) Calculate, how many units should the company produce in order to

(i) Maximize total revenue (ii) Minimize cost (iii) Maximize profit. (iv) Comment on (i), (ii) and (iii) above.

Answer

Find Related Questions by Tags, levels, etc.

Tags: average revenue, Business Economics, calculus applications, Cost Minimization, Marginal Cost, Marginal Profit, Marginal Revenue, Optimization, Profit Maximization, Revenue Maximization
Level: Level 2

QT – Nov 2017 – L1 – Q6b – Elements of Calculus

Calculate marginal cost, revenue, and profit for a company’s production of beverage cans.

Question

Kyerewaa Ventures is a manufacturing company in the business of producing beverage cans for clients in the brewery industry. The weekly total cost to produce $x$ cans is given by:

The demand function for the cans is given by:

$P (x) = 200 - 0.005 x$

The company has set a production limit to 10,000 cans and it sells all the cans that are produced.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Function, Marginal Cost, Marginal Profit, Marginal Revenue, Optimization, Revenue Function
Level: Level 1

Series: NOV 2017

Question Tag: Marginal Profit

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QMDDM – OCT 2022 – L2 – Q4 – Revenue Cost Profit Optimization

Given total revenue TR = -14x² + 2000x and total cost TC = x³ - 15x² + 1000 functions, explain marginal and average concepts, and calculate production levels to maximize revenue, minimize cost, maximize profit, with comments.

QT – Nov 2017 – L1 – Q6b – Elements of Calculus

Calculate marginal cost, revenue, and profit for a company’s production of beverage cans.

QMDDM – OCT 2022 – L2 – Q4 – Revenue Cost Profit Optimization

Given total revenue TR = -14x² + 2000x and total cost TC = x³ - 15x² + 1000 functions, explain marginal and average concepts, and calculate production levels to maximize revenue, minimize cost, maximize profit, with comments.

QT – Nov 2017 – L1 – Q6b – Elements of Calculus

Calculate marginal cost, revenue, and profit for a company’s production of beverage cans.

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Question Tag: Marginal Profit

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QMDDM – OCT 2022 – L2 – Q4 – Revenue Cost Profit Optimization

Given total revenue TR = -14x² + 2000x and total cost TC = x³ - 15x² + 1000 functions, explain marginal and average concepts, and calculate production levels to maximize revenue, minimize cost, maximize profit, with comments.

You're reporting an error for "QMDDM – OCT 2022 – L2 – Q4 – Revenue Cost Profit Optimization"

QT – Nov 2017 – L1 – Q6b – Elements of Calculus

Calculate marginal cost, revenue, and profit for a company’s production of beverage cans.

You're reporting an error for "QT – Nov 2017 – L1 – Q6b – Elements of Calculus"

QMDDM – OCT 2022 – L2 – Q4 – Revenue Cost Profit Optimization

Given total revenue TR = -14x² + 2000x and total cost TC = x³ - 15x² + 1000 functions, explain marginal and average concepts, and calculate production levels to maximize revenue, minimize cost, maximize profit, with comments.

You're reporting an error for "QMDDM – OCT 2022 – L2 – Q4 – Revenue Cost Profit Optimization"

QT – Nov 2017 – L1 – Q6b – Elements of Calculus

Calculate marginal cost, revenue, and profit for a company’s production of beverage cans.

You're reporting an error for "QT – Nov 2017 – L1 – Q6b – Elements of Calculus"

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