Total cost-average cost-profit calculations

Reference no: EM1367991

Handy Vac manufactures and distributes a line of feather dusters. Demand per period (Q) for the Vac-O-Matic, their most popular feather duster, has the relationship:

Q = 500 - (1/2)P

where P is price. Total costs (with a "normal" distribution to the unit holders included) of producing Q units per period are:

TC = 10,000 + 50Q + 3Q2

a) Determine the total revenue (TR) and total profits in terms of Q.

b) At what level of output (Q) are total profits maximized? What price will be charged? What are total profits at this output level?

Reference no: EM1367991

Questions Cloud

Which shipper service to choose for company : Your task is to choose the best shipper for company. Compare these shippers, like FedEx (www.fedex.com), UPS (www.ups.com), and the U.S. Postal Service (www.usps.gov).

Determining short run supply function : Derive the firm's supply curve, expressing quantity as a function of price. Derive the market supply curve if the company is one of 200 competitors. Compute market supply per week at a market price of $25 per rack delivered and serviced.

Elucidate what will happen to equilibrium cost and quantity : Elucidate what will happen to equilibrium cost and quantity of satellite TV service if wages of workers who provide satellite TV service increase while at same time cost of cable television service.

Explanation of micro vs macroeconomics : Would you give an example of how a macroeconomic phenomenon has impacted a personal or business decision of yours? In the end, what was the result of your decision?

Total cost-average cost-profit calculations : Find out the total revenue (TR) and total profits in terms of Q. At what level of output (Q) are total profits maximized? What price will be charged? What are total profits at this output level?

Concept of empowerment in assisting families : How might the nurse utilize the concept of empowerment in assisting families to deal with the recurring infestations with head lice?

What your desired outcome on each test : Construct a model to conclude your allocation of study hours. Include as assumptions points you "gain" from an hour of study time in each subject and your desired outcome on each test.

Policies control decisions : Show in scholarly detail how policies control decisions while defining allowable discretion

Use a risk management plan for earthquake : what are the critical factors you will need to consider for those items you will purchase and why are they are critical to the success of your project?

User Account

All Pages