Finding profit function for revenue and cost functions

Reference no: EM1323312

Q1) "Investment" (zero cost) has 80% chance of paying $125 and a 20% chance of losing $375. I understand that expected payout is (.8x$125)-(.2x$375)=$25. I can make this "investment" every month. Or we can say, how much money do I need to have say 98% probability of not going broke and being able to reap expected long them expected pay-off of the $25/month".

Revenue and cost functions for producing and selling quantity x for certain production facility are given below.

R(x) = 12x - x²

C(x) = 18 + 3x

a) Find out profit function P(x).

b) Use Excel to sketch functions R(x), C(x) and P(x) for the interval 0≤ x ≤ 10. Copy and paste graph below. Use Scatter plot with smooth lines and markers.

c) Calculate the break-even quantities.

d) Find out the marginal revenue R'(x).

e) Find out the marginal cost C'(x)

f) At what quantity is profit maximized?

Reference no: EM1323312

Questions Cloud

Result of perception of the dragon : Linda told Bob, "That cloud looks like a dragon!" Now when Bob looks at the cloud, he can't stop himself from seeing a dragon. Bob's perception of the dragon is a result of:

How much mechanical energy is lost : Suppose you see two main-sequence stars of the same spectral type. Star 1 is dimmer in apparent brightness than Star 2 by a factor of 100. What can you conclude? (Overlook any effects that might be caused by interstellar dust and gas.)

Various rates of pay among the different major groups : Differentiate between the various rates of pay among the different major groups of employees, and include information about the differences between exempt and non-exempt employees.

Case study beaufort distributing company : Connie was employed by the Beaufort Distributing Company. She worked at an offsite location keeping track of the inventory in that facility. Connie was the only female in the building and Milton, her supervisor, subjected her to constant verbal ab..

Finding profit function for revenue and cost functions : Revenue and cost functions for producing and selling quantity x for certain production facility are given below. Find out profit function P(x).

Reinforcement principles-schedule : Therefore, she is interested in getting a slow but steady rate of response from her workers. According to reinforcement principles, she should probably use a ________ schedule.

What is the maximum acceleration belt : An 11.00 kg crate is placed on a horizontal conveyor belt. The materials are such that static friction = 0.47 and kinetic friction = 0.24.

Evaluate merit of her claim : When MaryJo refuses to accede to her employer's wishes, she is fired. She files a claim with the EEOC, alleging that her employer failed to accommodate her religious beliefs. Evaluate the merit of her claim.

Steps of the scientific method-scientific thinking : Write a second paragraph using the steps of the scientific method to explain how the person could have used scientific thinking.

User Account

All Pages