also, if anyone could tell me how average cost, total cost, quantity demanded, price, marginal cost, marginal revenue, and total revenue all relate to each other then this would be better for me.
Got a couple of questions i can't seem to asnwer, this seemed the best forum for them.
The demand and marginal cost functions for a firm’s product are given by the following functions:
Q = 48 – 2P
MC = 3Q – 8
Where Q = quantity demanded
P = price per unit of the product
MC = marginal cost
1 Determine the total revenue and marginal revenue functions.
2 Determine the profit maximising output and price.
3 If the fixed cost of production is 25, determine the total cost function, the total cost of producing the profit maximising output and the maximum
profit.
and
The average cost and demand functions for a firm’s product are given by
the following functions:
AC = - 100 + 15 Q
Q = 30 – 0.05 P
Where Q = quantity demanded
P = price per unit of the product
AC = average cost
1 Determine the total cost and marginal cost functions.
2 Determine the total revenue and marginal revenue functions.
3 Determine the profit maximising output and price, and the maximum profit.
4 Suppose that the fixed cost of production rises by 50, determine the
effect on the total cost and marginal cost functions, the total cost of
producing the profit maximising output and the maximum profit.
Any help is really appreciated. My test is coming up soon.
#1 - Some people scan the "Replies" column for "0" and answer only those posts. If you reply to your own post, you drastically reduce your probability of a response.
#2 - These are not particularly computation problems. These are problems to test your knowledge of the definitions of the terms used. An example of the relatively simple calcualtions is not particularly likely to help you learn the definitions.
Tell me the definitions of he terms you need and we can talk.