Demand function P=50-Q
Average Cost 5Q + 40 +10/Q
Calculate the firm's total cost function
Find the marginal cost function and evaluate it at Q=2 and Q=3
What is the total revenue function
Find the firms's revenue maximising output level
Find the firm's profit function
Take a shot. What do you think the firm's cost and revenue functions are?
I thought maybe you could say the cost is 5Q + 40 + 10 but only on the basis that the average cost is divided by Q
My problem is I don;t understand the relationship between all the functions so no idea how to find the revenue function
1 answer
I want to know how to solve it