Question

NetSell, a the TV remote control supplier for Lumyn Electronics, has a weekly production cost of q TV remote controls that is given by
C(q) = 0.000004q^3 - 0.03q^2 + 100q + 75,000

where q is in the interval [0, 10,000].

The demand function for this product is given by

p(q) = -0.005q + 200.

Based on this information, find the following:

a) The marginal cost for the company.

b) The marginal revenue for the company.

c) The marginal profit for the company when 2,000 and 7,000 TV remote controls are manufactured.

Answer 1

Answer:

a.  $\frac{dC(q)}{dq} = 0.000012q^2 -0.06q + 100$

b. $\frac{dR(q)}{dq}=-0.01q+200$

c.

$U'(2000)=-0.000012(2000)^2+0.05(2000)+100 = 152$

$U'(7000)=-0.000012(7000)^2+0.05(7000)+100 = -138$

 

Step-by-step explanation:

a) The marginal cost function is given by the derivative of the total cost function, in this way the marginal cost function for this company is:

$\frac{dC(q)}{dq} = \frac{dC(q)}{dq} (0.000004q^ 3 - 0.03q ^ 2 + 100q + 75000) = 0.000012q^2 -0.06q + 100$

b) The income function is given by the relation $R (q) = P (q) q = -0.005q^2 + 200q$.

The marginal revenue function for the company is given by the derivative of the revenue function, in this way the marginal revenue function is:

$\frac{dR(q)}{dq}= -0.01q+200$

 

(c) The profit function of the company is given by the relation $U (q) = R (q) - C (q)$, and the marginal utility function is given by the derivative of the utility function, in this way , the marginal utility function is:

$\dfrac{dU(q)}{dq}=R'(q) - C'(q) = -0.01q+200 - (0.000012q^2-0.06q+100) = -0.000012q^2+0.05q+100$

When q = 2000, the marginal utility is:

$U'(2000)=-0.000012(2000)^2+0.05(2000)+100 = 152$

When q = 7000, the marginal utility is:

$U'(7000)=-0.000012(7000)^2+0.05(7000)+100 = -138$