I have a project and part of it has to do with revenue, demand and profit. I know that Revenue=price x quantity but can profit equal price x quantity demanded? I have both written down and I am getting confused because I was supposed to find the profit but I have the revenue function.
Profit= price x quantity - costs
and costs= fixed cost + unitcost x quantity.
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 into -60p^2+950p to get the profit and determine which one gives you the most profit.
To calculate profit, you need to consider both revenue and costs. Revenue is the total income generated from selling a specific quantity of a product at a given price, which is calculated using the formula: Revenue = Price x Quantity.
To determine the profit, you need to subtract the total cost from the revenue. The total cost includes both fixed costs (costs that do not vary with the quantity produced) and variable costs (costs that change based on the quantity produced).
The formula to calculate profit is: Profit = Revenue - Total Cost.
To find the profit, you need to have information about both the revenue and the associated costs. If you only have the revenue function (Revenue = Price x Quantity), it is not enough to determine the profit accurately. You will also need information about costs to calculate the profit.
If you don't have the cost information, you may need to gather additional data or consult with relevant stakeholders to determine the costs associated with your project. Without the cost data, you will not be able to calculate the profit accurately.