Problem 1 (a) Teddy J is a manufacturer of dish washing liquid. If his monthly demand function for 750ml size is q = 4000 – 250p and his total cost function is C(q) = 500 + 0.2q. (i) Derive an expression, R(q) for Teddy J's total revenue curve. (ii) Derive an expression, II(q) for Teddy J's profit function. (iii) Determine whether Teddy J's profit is increasing or decreasing when he produces 5 hundred, 750ml bottles of dish washing liquid.
Problem 1 (a) Teddy J is a manufacturer of dish washing liquid. If his monthly demand function for 750ml size is q = 4000 – 250p and his total cost function is C(q) = 500 + 0.2q. (i) Derive an expression, R(q) for Teddy J's total revenue curve. (ii) Derive an expression, II(q) for Teddy J's profit function. (iii) Determine whether Teddy J's profit is increasing or decreasing when he produces 5 hundred, 750ml bottles of dish washing liquid.
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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Transcribed Image Text:Problem 1
(a) Teddy J is a manufacturer of dish washing liquid. If his monthly demand function for 750ml
size is q = 4000 – 250p and his total cost function is C(q) = 500 + 0.2g.
(i)
Derive an expression, R(q) for Teddy J's total revenue curve.
(ii) Derive an expression, I(q) for Teddy J's profit function.
(iii) Determine whether Teddy J's profit is increasing or decreasing when
he produces 5 hundred, 750ml bottles of dish washing liquid.
(iv) How many 750ml bottles of dish washing liquid should Teddy J produce
per month if he wishes to maximize his profits.
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