# Managerial Economics

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I have an exam in two days. I need an explanation to this question please.

MC = 10+5Q

derive an equation for total cost

• Managerial Economics -

Integrate the MC function. MC is the first derivitive of TC. So,
TC = 10Q + (5/2)Q^2 + C

• Managerial Economics -

A television station is considering the sale of promotional DVDs. It can have the DVDs produced by one of two suppliers. Supplier A will charge the station a set-up fee of \$1200 plus \$2 for each DVD; supplier B has no set-up fee and will charge \$4 per DVD. The station estimates its demand for the DVDs to be given by Q = 1,600 - 200P, where P is the price in dollars and Q is the number of DVDs. The price equation is P = 8 -Q/200

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