Calculus Maximizing Profit

  • Thread starter xmf77
  • Start date
  • #1
xmf77
2
0
Homework Statement:
For a monopolist's product,

the demand equation is

p=30−2q

and the average-cost function is

c=2+40q.

Find the profit-maximizing price.
Relevant Equations:
Calculus, maximizing, profit, price
I know the formula profit = (price-cost)quantity.
but when ı applied the numbers ı can not substitute them
profit = ((30-2q-2-(40/q))

but don't know what ı need to do ?
would appreciate any help given please.
 

Answers and Replies

  • #2
PeroK
Science Advisor
Homework Helper
Insights Author
Gold Member
2022 Award
23,774
15,379
Homework Statement:: For a monopolist's product,

the demand equation is

p=30−2q

and the average-cost function is

c=2+40q.

Find the profit-maximizing price.
Relevant Equations:: Calculus, maximizing, profit, price

I know the formula profit = (price-cost)quantity.
but when ı applied the numbers ı can not substitute them
profit = ((30-2q-2-(40/q))

but don't know what ı need to do ?
would appreciate any help given please.
You need to express your profit equation in terms of price, not in terms of demand.
 
  • #3
xmf77
2
0
İs there anyone?
 
  • #4
FactChecker
Science Advisor
Homework Helper
Gold Member
7,590
3,314
Is 'q' quantity? Is 'p' price? Did you include the quantity multiplier in your substitution into the profit equation?
 

Suggested for: Calculus Maximizing Profit

Replies
19
Views
556
  • Last Post
Replies
1
Views
508
  • Last Post
Replies
28
Views
850
  • Last Post
Replies
8
Views
694
  • Last Post
Replies
7
Views
429
Replies
9
Views
488
Replies
4
Views
532
  • Last Post
Replies
7
Views
846
  • Last Post
Replies
23
Views
746
Replies
12
Views
611
Top