Ebo is the owner of medium-sized company that assembles personal computers in Ghana. He purchase most of the components for the company such as random access memory (RAM) on a competitive market. In order to maximise profit in the short run, he employed an economist to estimate the demand curve, which he was able to use to derive the marginal revenue (MR) from his product as: MR = 70 – 16Q. The economist also derived the marginal cost function (MC) as: MC = 6Q - 51. (i) Find the total revenue function and deduce the corresponding demand equation. (ii) Find the total cost function if the fixed cost is 400. (ii) Determine the number of laptops that max imizes the company's profit. (iv) How much should the firm charge for one computer? (v) Find the total profit at the profit maximizing level of output.

Ebo is the owner of medium-sized company that assembles personal computers in Ghana. He purchase most of the components for the company such as random access memory (RAM) on a competitive market. In order to maximise profit in the short run, he employed an economist to estimate the demand curve, which he was able to use to derive the marginal revenue (MR) from his product as: MR = 70 – 16Q. The economist also derived the marginal cost function (MC) as: MC = 6Q - 51. (i) Find the total revenue function and deduce the corresponding demand equation. (ii) Find the total cost function if the fixed cost is 400. (ii) Determine the number of laptops that max imizes the company's profit. (iv) How much should the firm charge for one computer? (v) Find the total profit at the profit maximizing level of output.

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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Concept explainers

Optimization

Optimization comes from the same root as "optimal". "Optimal" means the highest. When you do the optimization process, that is when you are "making it best" to maximize everything and to achieve optimal results, a set of parameters is the base for the selection of the best element for a given system.

Integration

Integration means to sum the things. In mathematics, it is the branch of Calculus which is used to find the area under the curve. The operation subtraction is the inverse of addition, division is the inverse of multiplication. In the same way, integration and differentiation are inverse operators. Differential equations give a relation between a function and its derivative.

Application of Integration

In mathematics, the process of integration is used to compute complex area related problems. With the application of integration, solving area related problems, whether they are a curve, or a curve between lines, can be done easily.

Volume

In mathematics, we describe the term volume as a quantity that can express the total space that an object occupies at any point in time. Usually, volumes can only be calculated for 3-dimensional objects. By 3-dimensional or 3D objects, we mean objects that have length, breadth, and height (or depth).

Area

Area refers to the amount of space a figure encloses and the number of square units that cover a shape. It is two-dimensional and is measured in square units.

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Ebo is the owner of medium-sized company that assembles personal computers in Ghana. He
purchase most of the components for the company such as random access memory (RAM) on
a competitive market. In order to maximise profit in the short run, he employed an economist
to estimate the demand curve, which he was able to use to derive the marginal revenue (MR)
from his product as: MR = 70 – 16Q. The economist also derived the marginal cost function
(MC) as: MC = 6Q - 51.
(i) Find the total revenue function and deduce the corresponding demand equation.
(ii) Find the total cost function if the fixed cost is 400.
(ii) Determine the number of laptops that max imizes the company's profit.
(iv) How much should the firm charge for one computer?
(v) Find the total profit at the profit maximizing level of output.

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