The equation for the cost function is. where C is the total cost. Note we are measuring economic cost, not accounting cost. Since profit is the difference between revenue and cost, the profit functionsThe revenue function minus the cost function; in symbols π = R-C = (P*Q) - (F + V*Q). will be. Here π is used as the symbol for profit.
http://2012books.lardbucket.org/books/managerial-economics-principles/s02-03-revenue-cost-and-profit-functi.html
The total revenue–total cost perspective relies on the fact that profit equals revenue minus cost and focuses on maximizing this difference, and the marginal revenue – marginal cost perspective is based on the fact that total profit reaches its maximum point where marginal revenue equals marginal cost. Contents.
https://en.wikipedia.org/wiki/Profit_maximization
The profit-maximizing output level is represented as the one at which total revenue is the height of C and total cost is the height of B; the maximal profit is measured as CB. This output level is also the one at which the total profit curve is at its maximum.
https://en.wikipedia.org/wiki/Profit_maximization
To obtain the profit maximizing output quantity, we start by recognizing that profit is equal to total revenue (TR) minus total cost (TC). Given a table of costs and revenues at each quantity, we can either compute equations or plot the data directly on a graph.
https://en.wikipedia.org/wiki/Profit_maximization
Find the manufacturer’s weekly fixed costs and marginal cost per case of soda. Solution: We would like to find a function that describes this situation. Recall that the marginal cost is, and in this case it represents the cost to produce one case of soda.
http://www.math.utep.edu/Faculty/cmmundy/Math%201320/Cost%20examples.pdf
We will look at the profit and loss account (formally called the trading and profit and loss account) and see how businesses calculate profit. This account looks at a business over a period of time, usually a year. Profit is basically defined as revenue minus costs. It is the difference between how much the business gets from selling its product and the amount it spent.
http://teachersnetwork.org/teachnet-lab/london/dsalbstein/profit/profit.htm
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https://quizlet.com/8649239/chapter-13-flash-cards/
If revenue is greater than costs, the business is making a profit. If, however, costs are greater than revenue, the business is making a loss. Businesses want more profit as it can be used to expand the business (see internal sources of finance) or to reward owners/shareholders. There are two ways of increasing profit:
http://teachersnetwork.org/teachnet-lab/london/dsalbstein/profit/profit.htm
Solving this for gives, so they must sell 700 newspapers in order to break even. 3) The cost of renting tuxes for the Choral Society's formal is $20 down, plus $86 per tux. Express. the cost C as a function of x, the number of tuxedos rented. Solution: Since it costs $20 regardless of how many tuxes you rent, this is the fixed cost. Since it’s $86 per tux, this is the marginal cost. The cost function is thus. Use your function to answer the following questions. a) What is the cost of renting 5 tuxes? Solution: Plug 5 into the cost function to find the cost to rent 5 tuxes: So it costs $450 to rent 5 tuxes.
http://www.math.utep.edu/Faculty/cmmundy/Math%201320/Cost%20examples.pdf
The fixed costs are represented by. To answer the questions, we must find both and. Since this is a linear function, we can find using the formula for finding the slope of a line between two points, where the points here are and. The slope formula is So the marginal cost is.
http://www.math.utep.edu/Faculty/cmmundy/Math%201320/Cost%20examples.pdf
what is revenue minus variable cost
Revenue minus variable cost is the difference between how much the business gets from selling its product and the amount it spent. The revenue minus variable cost is the difference between how much the business gets from selling its product and the amount it spent.