Demand, revenue, cost & profit
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Intros
Examples
Lessons
- Finding the Demand, Revenue, Cost and Profit Functions
Desmond's Laptop Company is selling laptops at a price of $400 each. They estimate that they would be able to sell 200 units. For every $10 dollars increase in price, the demand for the laptops will decrease 30 units. Assume that the fixed cost of production is $42500 and each laptop costs $50 to produce. - Patsy is selling phones at a price of $700 each. They estimate that they would be able to sell 1000 units. For every $1 dollars decrease in price, the demand for the phones will increase by 50 units. Assume that the fixed costs of production are $300000 and each phone costs $200 to produce.
- Break even points
The demand and cost function for a certain company is:
For what value(s) of causes you to have a profit of zero? - The demand and cost function for a certain company is:
For what value(s) of causes you to have a profit of zero?