1. If the cost function and demand curve for a certain product are C(x) = 60x + 7200 and P=300 – 2x respectively.
a. The total revenue function
b. The marginal Revenue Function
c. The marginal Cost Function
d. Point(s) at which there is break even
e. The value of x at which marginal revenue equal to marginal cost
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Cost function for a certain product C(x) = 60x + 7200
Demand function p=300 – 2x
a. The total revenue function R(x)=x*p
b. Marginal revenue is the derivative of the revenue function R(x).
c. Marginal cost is the derivative of the cost function C(x).
C(x) = 60x + 7200
d. The profit function P(x) is given by R(x)-C(x)
Break-even point is the point at which cost = revenue, i.e. Profit = 0