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14111cn1.7 - of the revenue and cost functions Example 3 A...

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c Kendra Kilmer August 18, 2011 Applications : 1. Market Equilibrium : The point at which the consumer and supplier agree upon (i.e. the point of intersection of the supply and demand curves) Example 2: If the supply equation is 5 x - 6 p + 14 = 0 and the demand equation is 4 x + 3 p - 59 = 0 where x represents the quantity demanded in units of 1000 and p is the unit price in dollars, find the equilibrium quantity and the equilibrium price. 2. Break-Even Point : The point at which the company suffers neither a loss or gain. (i.e. the point of intersection
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Unformatted text preview: of the revenue and cost functions) Example 3: A manufacturer of garbage disposals, has a monthly fixed cost of $10 , 000 and a production cost of $20 for each garbage disposal manufactured. The units sell for $50 each. (a) What is the cost function? (b) What is the revenue function? (c) What is the profit function? 7...
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