# Effective Economics Of Industry Under Perfectly Competitive Market (Math Problem Sample)

The task was about finding the Fix cost, variable cost and profit MAXIMIZATION. The sample is all about economics of industry under perfectly COMPETITIVE market

source..The demand and cost function for a company is estimated as follows:

P =100- 8Q ------------------------------------------------Eq1

CT= 50 +80Q -10Q2 + 0.6Q3 ----------------------------Eq2

* Solution

From the demand function price of goods manufactured must be less 100 which is less than the quantity sold and the cost function;

Fixed cost=50

Variable cost=80Q-10Q2+0.6Q3

We then explore way to find the following variables;

Total revenue (TR) = P*Q = 100Q –8Q2 --------------------------------------------------Eq3

Marginal revenue (MR) = First order derivative of TR with respect to Q = MR = 100 – 16Q --------------------------------Eq4

Marginal cost (MC) = First order derivative of TC with respect to Q=

MC = 80-20Q+1.8Q2 ---------------------------------------------------------------------Eq5

Average revenue (AR) = 100- 8Q= P ---------------------------------------------------Eq6

This

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