Example 

Suppose the demand and cost functions are given by

         Q = 21 - 0.1P and C = 200 + 10Q

Where,

         Q - Quantity sold

         P - Price per unit sold

         C - Cost of production.

We can compute the revenue and profit as:

Revenue	=	Q x P
	=	Q[210 - 10Q]
	=	210Q - 10Q2
Profit	=	Revenue - Cost
	=	210Q - 10Q2 - [200 +10Q]
	=	-10Q2 + 200Q - 200

Posted Date: 9/13/2012 5:49:17 AM | Location : United States

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