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A bakery finds that the price they can sell cakes is given by the function p = 580 - 10x where x is the number of cakes sold per day, and p is price. The total cost function of the company is given by c = (30+5x) 2 where x is previously defined, and c is total cost.
Question A. Find the revenue and marginal revenue functions [Hint: revenue is price multiplied by quantity i.e. revenue = price × quantity]
Question B. Find the fixed cost and marginal cost function [Hint: fixed cost does not change with quantity produced]
Question C. Find the profit function [Hint: profit is revenue minus total cost]
Question D. Find the quantity that maximizes profit
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