Learn About Business Calculus

Cost (Production), Profit Minimization and Maximization Problems

1. Introductory Business Calculus Applications Problems with Solutions, Explanation and Overview: http://tutorial.math.lamar.edu/Classes/CalcI/BusinessApps.aspx
2. Business Calculus Formula Summary Sheet and Overview http://www.rit.edu/~w-asc/documents/services/resources/handouts/40Business%20Applications%20in%20Algebra%20and%20Calculus.pdf
3. Intermediate Business Applications Problems, 15 Problems With Complete Solutions, http://download.nos.org/srsec311new/L.No.41.pdf

p(x) is called the price or demand function It gives the price of a unit sold based on the number of units sold (demand for the products).

Costs = C(x),  the cost function to calculate costs to produce x units, Gives cost to produce x units. Average production cost per unit = C(x)/x

Revenue = R(x) = xp(x) = number of units sold * price function  The demand or price function, p(x),  dictates the unit selling price at a specific level of demand,

Profit  = P(x) = number of units sold  * (price or demand function to calculate selling price)- costs to produce the number of units, P(x) = xR(x) - C(x)

Profit = Revenue - Costs =  R(x) - C(x) = xp(x) - C(x) = units sold*selling price of units sold - units produced * costs to produce units sold

Problem Solution Keywords: Demand(Price Function), Revenue Function Marginal Cost, Marginal Profit and Marginal Revenue Functions