Practice Worksheet on Application of Calculus in Commerce and Economics
1. A company wants to launch a new product. The launch is going to cost Nu 37,500 as
fixed cost and Nu 200 per unit as the variable cost of production. The manager estimates
the revenue function for the sale of x units as 4825x 125x2 . Determine the following:
(a) Cost function
(b) Break-even point
(c) Profit function
(d) Number of units the company must produce so that the company will have maximum
profit.
(e) Marginal revenue and average revenue function
(f) Marginal cost and average cost function
(g) Demand function
2. A company found that the marginal revenue function of production of commodity is
MR  275  x  0.3x2 . Find the increase in the company’s revenue if the production was
increased from 10 to 20 units.
3. A manufacturing company finds that the total cost of producing 3 units of a product is
Nu 7800. If the marginal cost of producing x units of the product is given by
MC  x x  1 , find the total cost function of the company and average cost of producing
10 units of the product.
Compiled by Pasang Dorji (Gesarling Central School, Dagana)