Question 1 A computer retailing company specializes in the sale of jump drives to community colle students. The demand function for jump drives is p=2+10v+1000 dollars For the same company the average cost function is given as T=2x +36v-1600 - dollars Where p is the price m dollars and x represents units of output. 1) Determine the revenue funetion Determine the cost function Determine the profit funetion 11) 111

Microeconomic Theory
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Chapter11: Profit Maximization
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Question 1
A computer retailing company specializes in the sale of jump drives to community college
students
The demand function for jump drives is
p=2x- +10=1000
dollars
For the samne company the average cost function is given as.
2+36v-1600 -
dollars
Where pis the price n dollars and x represents units ofiourput.
Determine the revenue function
Determine the cost funetion
Determine the profit function
Find the price and output that will maximıze profir,
Find the maximum profit
11
111)
Iv)
Ouestio n 2
Transcribed Image Text:Question 1 A computer retailing company specializes in the sale of jump drives to community college students The demand function for jump drives is p=2x- +10=1000 dollars For the samne company the average cost function is given as. 2+36v-1600 - dollars Where pis the price n dollars and x represents units ofiourput. Determine the revenue function Determine the cost funetion Determine the profit function Find the price and output that will maximıze profir, Find the maximum profit 11 111) Iv) Ouestio n 2
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