microecon

posted by .

Our professor gave us a exercise to do for fun where he said to derive profit=PQ(P,A)-C(Q(A))-A (note Q is a function of A both for revenue and cost)
the answer I came up with is profit= Pdq/da -Cqfq/da-1

=Pdq/da -(d+c/dq)(dq/da)

Im not sure if I am right please help.

  • microecon -

    I'm having a trouble with your notation. This Jiskha site has mucho trouble in expressing mathmatical equations. (where did your "f" come from?)

    That said, this is more of a calculus question. MR is the first derivitive of total revenue, so Pdq/da looks corret. MC is the first derivitive of the cost function. Here use the chain rule. Set MR-MC=0 and ta-da you have your maximum profits equation.

    I hope this helps. Lotsa luck.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Calculus

    So there is no way profit = price x quantity demanded because I have q=-60p+950 and Revenue or profit=-60p^2+950p. I then have to find out the profit made by selling things at 5.50, 10 , and 15 dollars. I was told to plug these numbers …
  2. calc.microecon

    I was trying to derive for A from the function: profit=PQ(P,A)-C(Q(A))-A these are my steps profit=Pdq/da-Cqdq/da-1 dprofit/dA=P(dq/da)-MC(dq/da)-1=0 (p-MC)change in q/change in A=1 p-mc/p[A/Q *change in q/change in A]=A A=TR Ea/Ed …
  3. Microecon

    The following diagram shows the cost structure of a monopoly firm as well as market demand. Identify on the graph and calculate the following: a. Profit-maximizing output level b. Profit-maximizing price c. Total revenue d. Total cost …
  4. algebra

    We did not find results for: suppose a company manufactures MP3 players and sell them to retailers for $98 each. it has a fixed cost of $262,500 related to the production of the MP3 players and the cost per unit is $23 what is the …
  5. Business Calculus

    A company has operating costs of $2000 per thousand items produced. Its revenue function can be modeled by the equation: R(x)=30x/(x+2)² , where x is measured in thousands of items produced, and C and R are measured in thousands of …
  6. algerbra 1

    4. Your profit P is determined by subtracting the cost C, the amount of money it costs to operate a business, from the revenue R, the amount of money you earn from selling your product. Profit can be represented algebraically by the …
  7. Calculus Help

    Using the revenue function R(q) = 510q and the cost function C(q) = 9400+3q2. Round your answers to the nearest whole number. a) At what quantity is profit maximized?
  8. economics

    A toy manufacturer has found that its cost,revenue and profit function can be expressed as function of production of toys in a week and C&R&p represent cost,revenue and profit respectively C=6000+2x R=20x-x^2 all over 2000...suppose …
  9. High school

    . A cement manufacturer has a cost of production of $28 for each bag of cement produced and the sells a bag of cement for $40. The monthly fixed cost of the manufacturer is $180,000. a. Derive the monthly cost function of the manufacturer?
  10. MATHS

    A company is a monopolist. The demand function for its product is as follows: Q = 60 – 0.4P + 6Y + 2A Where Q = quantity sold in units P = Price per unit Y = per capita disposal income (thousands of dollars) A = hundreds of dollars …

More Similar Questions