Please Maths People Answer This Question For Meee And Explain!

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cherrydrops1985
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#1
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#1
1. Find an expression for the profit function (pie) given the demand function P= 24 - 2Q
and the average cost function AC = 18/Q + 4
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fishpaste
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I'm guessing this is some weird business studies thingy, will the firm produces at the minimum average cost?
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username9816
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(Original post by SparklLZz)
1. Find an expression for the profit function (pie) given the demand function P= 24 - 2Q
and the average cost function AC = 18/Q + 4
how can the profit function be pie?

pie is pie. 3.14...
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fishpaste
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And psh what an unrealistic average cost :P what happened to diseconomies of scale? :P *has just realised it has no minimum*
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fishpaste
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(Original post by bono)
how can the profit function be pie?

pie is pie. 3.14...
What? Pi is a letter of the greek alphabet man, a dummy variable, whatever you decide it is :P
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username9816
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(Original post by fishpaste)
What? Pi is a letter of the greek alphabet man, a dummy variable, whatever you decide it is :P
ohhh.....
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Alaric
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(Original post by fishpaste)
What? Pi is a letter of the greek alphabet man, a dummy variable, whatever you decide it is :P
rofl

'Tis also used to represent a transcendental number of course too...

It certainly doesn't come in apple flavour though

Alaric.
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fishpaste
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(Original post by Alaric)
rofl

'Tis also used to represent a transcendental number of course too...

It certainly doesn't come in apple flavour though

Alaric.
Pi ain't transcentental, it's exactly 3!
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Juwel
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(Original post by SparklLZz)
1. Find an expression for the profit function (pie) given the demand function P= 24 - 2Q
and the average cost function AC = 18/Q + 4
P = Demand = average revenue
And you have average cost.

Break even is when P = AC so 24-2Q = 18/Q + 4

That's all I can think of for now using my combined skills in Maths and Economics.
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fishpaste
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Okay, this is my attempt. Assuming a perfectly competitive market, price= demand. So:

Profit = P - AC = 24 - 2Q - (18/Q + 4) = 20 - 2Q - 18/Q

_________

Interesting, this maximises when dp/dq = 0, so -2 + 18/q^2 = 0

18/q^2 = 2
q = 3, so you'd sell 3 to maximise profit? Hmmm :P
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]{ingnik
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(Original post by bono)
ohhh.....
pie is tasty.
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username9816
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(Original post by ]{ingnik)
pie is tasty.
dont anyone dare link this to the scene in american pie..........

OOOPS!!
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Alaric
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(Original post by fishpaste)
Pi ain't transcentental, it's exactly 3!
In primary school, yes.



Alaric.
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Juwel
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(Original post by fishpaste)
Okay, this is my attempt. Assuming a perfectly competitive market, price= demand. So:

Profit = P - AC = 24 - 2Q - (18/Q + 4) = 20 - 2Q - 18/Q

_________

Interesting, this maximises when dp/dq = 0, so -2 + 18/q^2 = 0

18/q^2 = 2
q = 3, so you'd sell 3 to maximise profit? Hmmm :P
It only asks for the profit function so Profit = 20-2Q-(18/Q)
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fishpaste
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(Original post by ZJuwelH)
It only asks for the profit function so Profit = 20-2Q-(18/Q)
Yeah, sorry, just thought I might be wrong because maximum profit at 3 doesn't sound too realistic.
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Juwel
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#16
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(Original post by fishpaste)
Yeah, sorry, just thought I might be wrong because maximum profit at 3 doesn't sound too realistic.
Neither does the question, truth be told.
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