Answer to Question #332626 in Calculus for Olga

Question

The demand function Q(P) and cost functions C(Q) of a company's are given by the equations:

Q=12000−60P

(Q)=10000+4Q,

where P and Q are the price and quantity, respectively.

What is the company's profit function?

a.Profit=−60P−4Q+2 000

b.Profit=−60P^2+11 760P−58 000

c.Profit=−60P^2+12 240P−58 000

d.Profit=−60P^2+12 240P+38 000

Answer 1

 What is the company's profit function in terms P?

(Q) = 10 000 + 4Q = 10000 + 4(12000 - 60 P) = 58000 - 240 P

Profit = TR - Q= 12 000 P - 60 P²Â - (58 000 - 240 P) = -60 P²Â + 12240P - 58 000

Aswer: c