Math 71 Supplement 10-23-09

Math 71 Supplement - Math 71 Supplement Suppose x units of a product is produced in some interval $C x is the cost of producing x units and $R x is

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Math 71 Supplement 10-23-09 Suppose x units of a product is produced in some interval, $ C x ( ) is the cost of producing x units, and $ R x ( ) is the revenue of producing x units. Then the profit $ P x ( ) is given by P x ( ) = R x ( ) " C x ( ) . The derivatives of these functions C ' x ( ) , R ' x ( ) , P ' x ( ) are called marginal cost , marginal revenue , and marginal profit , respectively. They represent the rates of changes. However, the practical way to think about these are the following: C ' x ( ) " C x + 1 ( ) # C x ( ) , the cost of producing one product when x units are produced. R ' x ( ) " R x + 1 ( ) # R x ( ) , the revenue earned from one product when x units are produced. P ' x ( ) " P x + 1 ( ) # P x ( ) , the profit from selling one product when x units are produced. Example: A company is planning to manufacture and market a microwave oven. After extensive market analysis, the development and market department provides the following results: a weekly demand of 200 microwave oven at $160 per unit, and a weekly demand of 300 microwave oven at $140 per unit. The weekly fixed cost of
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/08/2010 for the course MATH 71 at San Jose State University .

Page1 / 2

Math 71 Supplement - Math 71 Supplement Suppose x units of a product is produced in some interval $C x is the cost of producing x units and $R x is

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online