A manufacturing company produces solar panels. The variable costs are $20 per unit and fixed costs a $10,875. The price demand relationship for this product is P= -0.25Q+ 250, where P is the unit sales price of the product and Q is the demand of solar panels. Given the following: Total cost = Fixed cost + Variable cost Revenue Demand × Price Profit= Revenue - Total cost • • 26. The equation that represent the total cost is: a. ($10,875+$20) Q b. $10,875 $20 Q c. $10,875 × $20 Q d. $10,875+$20 Q 27. The equation that represent the total revenue is:

A manufacturing company produces solar panels. The variable costs are $20 per unit and fixed costs a $10,875. The price demand relationship for this product is P= -0.25Q+ 250, where P is the unit sales price of the product and Q is the demand of solar panels. Given the following: Total cost = Fixed cost + Variable cost Revenue Demand × Price Profit= Revenue - Total cost • • 26. The equation that represent the total cost is: a. ($10,875+$20) Q b. $10,875 $20 Q c. $10,875 × $20 Q d. $10,875+$20 Q 27. The equation that represent the total revenue is:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.

Question

A manufacturing company produces solar panels. The variable costs are $20 per unit and fixed costs are
$10,875. The price demand relationship for this product is P=-0.25Q+ 250, where P is the unit sales
price of the product and Q is the demand of solar panels. Given the following:
• Total cost = Fixed cost + Variable cost
• Revenue = Demand x Price
• Profit = Revenue - Total cost
26. The equation that represent the total cost is:
a. ($10,875+$20) Q
b. $10,875-$20 Q
c. $10,875 × $20 Q
d. $10,875+$20 Q
27. The equation that represent the total revenue is:
a. $0.25Q²+$250Q
b. - $0.25Q²+$250Q
c. - $0.25Q²-$250Q
d. $0.25Q²-$250Q

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