Quadratic revenue function

Reference no: EM13100623

A quadratic revenue function often occurs in practice. The reason is that as more units are produced, the price must be lowered in order to sell them all.

a) A company has found that if they produce x units of a product, they must sell them each at $10 - 0.2x if they are to sell all of them. Determine the revenue function.

b) Their fixed costs are $40 and their variable costs per unit are $1. Determine the cost and profit functions.

c) Graph all three functions (on the same graph) over an appropriate range.

Reference no: EM13100623

Questions Cloud

Determine the upper control limit for an r chart : Twenty samples of subgroup size 3 (n=3) were collected for a variable measurement. Determine the upper control limit (UCL) for an R-chart.

What is the minimum efficient scale in this industry : What is the long-run equilibrium price in this market? Explain intuitively, in your own words, why this is the long-run equilibrium. What is the long-run market equilibrium quantity?

Explain sigficance of information literacy : In your own words explain "Information Literacy" and its sigficance to you. In your own words explain the Deep Web, also called as Hidden or Invisible Web, and why it is significant to you as a student?

Probability-exponential distribution : An infestation of a certain species of caterpillar called the spruce budworm can cause extensive damage to the timberlands of the northern United States. It is known that an outbreak of this type of infestation occurs, on the average, every 30 yea..

Quadratic revenue function : A quadratic revenue function often occurs in practice. The reason is that as more units are produced, the price must be lowered in order to sell them all.

Desired failure rate-reliability analysis-confidence levels : A "one-shot" device can be used only once; after use, the device (e.g. a nuclear weapon, space shuttle, automobile air bag) either is destroyed or must be rebuilt.

Calculate the average inventory level : A store faces a demand for one of its popular products at a cosntant rate of 4,500 units per year. It costs the store $120 to process an order to replenish stock and $30 per unit per year to carry the item in inventory.

The economically efficient rate of harvest : Can you find an example of natural resource policies (in the USA or elsewhere) that attempt to achieve efficient rates of harvest for renewable resources?

Random testing for probability : A company has just manufactured 1295 CDs, and 492 are defective. If 10 of the CD's are randomly selected for testing, what is the probability of the entire batch will be accepted

User Account

All Pages