Question

The demand function Q and cost function C(Q) of a commodity are given by the equations 

Q=20−0,01P,

 

C(Q)=60+6Q,

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

The total revenue function (TR) in terms of P is

a. TR=20−0,01P.

b. TR=P(120−0,01P^2).

c. TR=20P−0,01P^2.

d. TR=P2(20−0,01P^2).

Answer 1

$$TR=Q\cdot P=(20−0.01P)P$$

$$TR=20P-0.01P^2$$