enata and Jerome operate a company that makes miniature electronic surveillance drones from a warehouse in an industrial estate. Each drone costs them $49 to make and has additional fixed costs of $275 (per drone). On average, Renata and Jerome sell 85 drones per week for a price of $64 each. Renata and Jerome then decide to have a sale and reduces the price of each drone to an even numbered price between $54 and $60 inclusive. During the sale, they sell on average 150 devices per week. Q.Plot Total Cost, Total Revenue and Profit Functions on the same set of axes and Find the Marginal Revenue (MR) and Marginal Cost (MC) functions by differentiation and determine the level of output q at which MR = MC. With reference to your Excel plot, what conclusion can you make about this value?
enata and Jerome operate a company that makes miniature electronic surveillance drones from a warehouse in an industrial estate. Each drone costs them $49 to make and has additional fixed costs of $275 (per drone). On average, Renata and Jerome sell 85 drones per week for a
Renata and Jerome then decide to have a sale and reduces the price of each drone to an even numbered price between $54 and $60 inclusive. During the sale, they sell on average 150 devices per week.
Q.Plot Total Cost, Total Revenue and Profit Functions on the same set of axes and Find the Marginal Revenue (MR) and Marginal Cost (MC) functions by differentiation and determine the level of output q at which MR = MC. With reference to your Excel plot, what conclusion can you make about this value?
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