How do you find maximum revenue, maximum profit, and minimum average cost? Our teacher gave us a project to teach ourselves the section, but I can't learn very well even with her teaching, so I don't know how I'm supposed to do this...

Question

Steve · Answer

revenue is price * quantity profit is revenue - cost avg cost is totalcost/quantity as usual, max/min is found via the derivative

Lindsay · Answer

I don't remember how to did min/max. I can get as far as the critical numbers...

Steve · Answer

if you can find the critical numbers, that is where the derivative is zero. That is the point of min/max of the function.

Check some of the related links below; you will find such problems worked out.

Also, a net search for minimum revenue and such will produce many examples showing the method.