Question: The case talks about a certain company with fixed cost of P10,000, variable production cost of VC = 500Q -Q2 + 0.001Q3, and total revenue
The case talks about a certain company with fixed cost of P10,000, variable production cost of VC = 500Q -Q2 + 0.001Q3, and total revenue per week TR = 1500Q - 3Q2. The case has required four different requirements for the researchers to solve; first, the researchers must determine the profit equation and the marginal profit equation. Second, the researchers must determine the level of Q that maximizes total revenue. Third, the researchers must determine the level of Q that minimizes the total cost. Fourth, the researchers must determine the level of Q that maximizes the total profit. This case is critical to be analyzed and solved for the information that would be extracted from the case would be very beneficial to the company. The information could help the company to function efficiently; it will help them to understand more about the things they need to do to maximize their revenue and minimize their total cost, hence, they could maximize their total profit. The information that will be extracted from the case would also help them to decide intelligently in terms on their different approaches towards these kinds of issues. The company could rely on this information for the information shows the company the values that they need to accomplish for them to maximize revenue and profit and minimize cost. What could be the conclusion for this
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