8.0 Explain how mathematical relationships can be applied in the solution of economic and business problems

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

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

Topic: 8.0 Explain how mathematical relationships can be applied in the solution of economic and business problems

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

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.

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.

Our offerings

Community

Contact Info

Customer

Get In Touch

Topic: 8.0 Explain how mathematical relationships can be applied in the solution of economic and business problems

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

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"

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"

Our offerings

Community

Contact Info

Customer

Get In Touch

admin

Pick a Form