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22 Jan 2018

LUL (b) [1] Find the weekly cost function C(q) as a function of q. PL

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Jarrod Robel
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22 Jan 2018
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4. (10 marks) The publisher Entertainment Arbitrator sells the popular video game Sprockets of Peace. When each copy of the game is priced at $40, the weekly demand is 8000 copies. For every $1 increase in price, the number sold per week decreases by 50. Assume that it costs $20 to produce each copy of the game. (a) Find the linear demand equation. Use p for the unit price and q for the weekly demand (b) Find the weekly cost function C(q) as a function of q. (c) Find the weekly revenue function R(q) as a function of q.

(e) [1] Find the weekly revenue function R(q) as a function of q.

The demand function p=-4 +550 describes the relation between the number of televisions sold per week given by q, at a price of p dollars each. The weekly cost function is given by c=6800+150q. c) For which q will the marginal revenue be zero?

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