m119+q7+spr2010+key

m119+q7+spr2010+key - MR is the derivative of the Revenue...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
M119 Quiz 7 Spring 2010 KEY No graphing calculators . A company finds that the demand equation for a quantity q of Jphones sold at price p, in dollars is p = 290-3q. To product these Jphones, the company finds that fixed costs are $1975 and variable cost per unit is $74. a. (2 pts) Write the revenue function. So, b. (2 pts) Write the cost function. C = Fixed costs + Variable costs So, , c. (4 pts) At what quantity is profit maximized? Show your work. Profit is maximized where marginal revenue equals marginal cost.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: MR is the derivative of the Revenue function MR = 290 6q MC is the derivative of the Cost function MC = 74 Set 290 6q equal to 74 and solve for q 290 6q = 74 216 = 6q q = 36 d. (2 pts) What is the largest profit possible? When q = 36, total Revenue is 290(36) 3(36) 2 When q = 36 total Cost is 1975 + 74(36) = $4,639 = $6,552 So, when q = 36, Profit = $6,552 - $4,639 = $1,913...
View Full Document

This note was uploaded on 10/23/2011 for the course MATH-M 119 taught by Professor Rainey during the Spring '10 term at IUPUI.

Ask a homework question - tutors are online