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Math Help - Profit Function

  1. #1
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    Profit Function

    Been going back and forth and just want to see if I've come to the right conclusion! (Also if this is in the wrong section, let me know. New on here!)
    Question:
    Fixed costs of 10, Average Variable Cost function of q2+4 and the demand equation is p+q=20.

    A)Determine the profit function in terms of q.
    My answer:
    C(x)= q2+4+10
    =q2+14

    p(x) - p=20-q
    R(x) = [20-q][q]
    =20q-q2
    Therefore P(x) = 20q-q2-q2+14
    = -2q2+20q+14

    B) Determine the production level that maximises the profit.
    My answer:

    = -b/2(a)
    = -20/2(-2)
    = 5
    Last edited by simon24; November 27th 2012 at 01:57 PM.
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  2. #2
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    Re: Profit Function

    Quote Originally Posted by simon24 View Post
    Been going back and forth and just want to see if I've come to the right conclusion! (Also if this is in the wrong section, let me know. New on here!)
    Question:
    Fixed costs of 10, Average Variable Cost function of q2+4 and the demand equation is p+q=20.

    A)Determine the profit function in terms of q.
    My answer:
    C(x)= q2+4+10
    =q2+14

    p(x) - p=20-q
    R(x) = [20-q][q]
    =20q-q2
    Therefore P(x) = 20q-q2-q2+14
    = -2q2+20q+14
    Yes, this is correct.

    B) Determine the production level that maximises the profit.
    My answer:

    = -b/2(a)
    = -20/2(-2)
    = 6
    Well, that's just bad arithmetic! 20/4 is NOT 6.
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  3. #3
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    Re: Profit Function

    Quote Originally Posted by HallsofIvy View Post
    Yes, this is correct.


    Well, that's just bad arithmetic! 20/4 is NOT 6.
    Oh man me and my typing skills. I did have 5 written down! That's what I get for doing this quickly. Anyway thanks for checking the first part as well!
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