Revenue Maximization – NBC Institute

QT – Nov 2016 – L1 – Q6b – Elements of Calculus

Calculate the number of tons of low and high-grade steel to produce to maximize total revenue and determine the maximum total revenue.

Question

Tema Steel Plant is capable of producing tons per day of low-grade steel and tons per day of high-grade steel, where:

If the fixed market price of low-grade steel is GH¢6.90 and the fixed market price of high-grade steel is GH¢13.80:

i) Determine the number of tons of low-grade steel and high-grade steel to be produced to maximize total revenue. (10 marks)

ii) Determine the maximum total revenue. (4 marks)

Answer

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Tags: Calculus, Production, Revenue Maximization, Steel Plant
Level: Level 1

Topic: Elements of Calculus
Series: NOV 2016

QT – Nov 2018 – L1 – Q2b – Elements of Calculus

Determine the price and quantity that maximize revenue and profit, and compute the maximum profit for Renes Trading Company.

Question

Renes Trading Company sells $q$ kente strips per month at $p$ Ghana Cedis per kente strip. The demand function for kente strips is given by $p = 300 - 0.02 q$ . The kente strips cost GH¢30 per strip to manufacture. There are fixed costs of GH¢9,000 per month.

Required:
(i) Determine the price per kente strip that will maximize revenue. (4 marks)
(ii) Determine the quantity where profit is maximized. (4 marks)
(iii) Calculate the maximum profit. (2 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Differentiation, Elasticity of Demand, Profit Maximization, Revenue Maximization
Level: Level 1

Topic: Elements of Calculus
Series: NOV 2018

QT – Nov 2016 – L1 – Q6b – Elements of Calculus

Calculate the number of tons of low and high-grade steel to produce to maximize total revenue and determine the maximum total revenue.

Question

Tema Steel Plant is capable of producing tons per day of low-grade steel and tons per day of high-grade steel, where:

If the fixed market price of low-grade steel is GH¢6.90 and the fixed market price of high-grade steel is GH¢13.80:

i) Determine the number of tons of low-grade steel and high-grade steel to be produced to maximize total revenue. (10 marks)

ii) Determine the maximum total revenue. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Calculus, Production, Revenue Maximization, Steel Plant
Level: Level 1

Topic: Elements of Calculus
Series: NOV 2016

QT – Nov 2018 – L1 – Q2b – Elements of Calculus

Determine the price and quantity that maximize revenue and profit, and compute the maximum profit for Renes Trading Company.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Differentiation, Elasticity of Demand, Profit Maximization, Revenue Maximization
Level: Level 1

Topic: Elements of Calculus
Series: NOV 2018

Question Tag: Revenue Maximization

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QT – Nov 2016 – L1 – Q6b – Elements of Calculus

Calculate the number of tons of low and high-grade steel to produce to maximize total revenue and determine the maximum total revenue.

QT – Nov 2018 – L1 – Q2b – Elements of Calculus

Determine the price and quantity that maximize revenue and profit, and compute the maximum profit for Renes Trading Company.

QT – Nov 2016 – L1 – Q6b – Elements of Calculus

Calculate the number of tons of low and high-grade steel to produce to maximize total revenue and determine the maximum total revenue.

QT – Nov 2018 – L1 – Q2b – Elements of Calculus

Determine the price and quantity that maximize revenue and profit, and compute the maximum profit for Renes Trading Company.

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QT – Nov 2016 – L1 – Q6b – Elements of Calculus

Calculate the number of tons of low and high-grade steel to produce to maximize total revenue and determine the maximum total revenue.

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QT – Nov 2018 – L1 – Q2b – Elements of Calculus

Determine the price and quantity that maximize revenue and profit, and compute the maximum profit for Renes Trading Company.

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QT – Nov 2016 – L1 – Q6b – Elements of Calculus

Calculate the number of tons of low and high-grade steel to produce to maximize total revenue and determine the maximum total revenue.

You're reporting an error for "QT – Nov 2016 – L1 – Q6b – Elements of Calculus"

QT – Nov 2018 – L1 – Q2b – Elements of Calculus

Determine the price and quantity that maximize revenue and profit, and compute the maximum profit for Renes Trading Company.

You're reporting an error for "QT – Nov 2018 – L1 – Q2b – Elements of Calculus"

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