If company A manufactures t-shirts and sells them to retailers for US$9.80 each. It has fixed costs of $2625 related to the production of the t-shirts, and the production cost per unit is US$2.30. Company Balso manufactures t-shirts and selll them directly to consumers. The demand for its product isp 15- 125' its production cost per unit is US$5.00 %3D and its fixed cost are the same as for company A. (i) Derive the total revenue function, R(x) for company A. (ii) Derive the total cost function, C(x) for company A. (iii) Derive the profit function, II(x) for company A.
If company A manufactures t-shirts and sells them to retailers for US$9.80 each. It has fixed costs of $2625 related to the production of the t-shirts, and the production cost per unit is US$2.30. Company Balso manufactures t-shirts and selll them directly to consumers. The demand for its product isp 15- 125' its production cost per unit is US$5.00 %3D and its fixed cost are the same as for company A. (i) Derive the total revenue function, R(x) for company A. (ii) Derive the total cost function, C(x) for company A. (iii) Derive the profit function, II(x) for company A.
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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