¶ … Production Cost Per Edition Is
TC (Q) =70+0.10Q+0.001Q2
Functions
(i) Total Revenue Function
Total Revenue is normally calculated by multiplying the price of the product with the quantity sold.
TR (Q) =P (Q) x Q. where Q. is the quantity of output sold, and P (Q) is the inverse demand function of the price.
Price per unit is
Simplified function 0.90Q2
Profit Function
The profit is calculated by subtracting the production cost from the total revenue
(Q) = TR (Q) - TC (Q)
Production cost =70+0.10Q+0.001Q2
P (Q) x Q -- (70+0.10Q+0.001Q2) where P. Or ? is the price per Unit
PQ2-70+0.10Q+0.001Q2
Price per copy is
Q2 -70+0.10Q+0.001Q2
Profit Function = 0.9010 Q2 +0.10Q -70
Marginal Revenue Function
The marginal revenue is the extra revenue that comes from selling 1 additional unit. The change in revenue with respect to a change in quantity must be computed first.
MR (Q)= d (TR) Where'd represent derivative dQ
Total Revenue function = 0.90Q2
MR (Q)= d (TR) =d (0.90Q2)
dQ d (Q)
Marginal cost Function
The marginal unit is the last unit. Therefore, marginal cost is the cost of the last unit, or what it costs to produce one more unit. The change in costs from a previous level divided by the change in quantity from the previous level is represented by MC = Change in TC / Change in Q
MC (Q)= d (TC)
d (Q)
The function is =MC (Q)=d (70+0.10Q+0.001Q2)
d (Q)
Marginal profit Function
M ? = R ' (Q) - C ' (Q)
Marginal revenue is d (0.90Q2) - d (70+0.10Q+0.001Q2)
d (Q) d (Q)
M ? = 0.90Q2 - (70+0.10Q+0.001Q2 )
QQ
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