Putting It Together
After finishing this module, you should be able to differentiate between various types of functions (linear, quadratic, cubic, etc.). You recognize the demand function (p) and Cost function (C) as both being linear functions. You also recognize the Revenue Function (R) and the Profit Function (P) as both being quadratic functions. Knowing the type of function allows you to quickly identify the rate of change for both the linear functions (-0.5 and 3 for the demand and cost functions respectively). You also recognize that both the Revenue and Profit functions have a negative leading coefficient so their graphs open downward which means their vertex is a maximum. This will help you determine where to set the price at to obtain the maximum revenue and profit.Licenses & Attributions
CC licensed content, Original
- Authored by: Paul Jones and Lumen Learning. License: CC BY: Attribution.
