Answer to Question #117957 in Microeconomics for eman

Question

We got demand function q=6000-30p (q quantity, p=price). The total cost function is C(q)=72000+60q a) Solve the demand function for p and define its domain b) Find the marginal cost funtion MC and explain the result c) Find the income function R(q)

Answer 1

a) demand function for p:

$P=200-Q/30.$

Domain $0<=Q<=6 000$.

b)MC is a derivative of a total cost function, so

$MC=60.$

c) $R = P*Q-C$

$R=(200-Q/30)*Q-72000-60Q=140Q-Q^2/30-72000.$