2.4 Average Cost, Revenue & Profit - Practice

Average Cost, Revenue & Profit - Practice

Marginal Average Cost

1) Tonka can produce trucks at a cost of $5 each with fixed costs $10,000 per week.

a. Find the cost function.

b. Find the average cost function.

c. Find the marginal average cost function.

d. Evaluate MAC(x) at x = 500 and interpret your answer.

Marginal Average Profit

2) Broc's Billiard World Inc's profit P(x), measured in US currency, is P(x) = 20x - 2500 where x is the number of billiard cues sold.

a. Find the average profit function.

b. Find the marginal average profit function.

c. Evaluate MAP(200) and interpret your answer.

Marginal Average Revenue

3) The revenue, R(x) measured in US currency, generated from selling x candlesticks is 

a. Find the average revenue function.

b. Find the marginal average revenue function.

c. Evaluate MAR(15) and interpret your answer.