Suppose Kate's Great Crete (KGC)has annual variable costs of VC = 30Q + 0.0025Q² and marginal costs of MC = 30 + 0.005Q,where Q is the number of cubic yards of concrete it produces per year.In addition,it has an avoidable fixed cost of $50,000 per year.KGC's demand function is Q^d = 20,000 - 400P.What is KGC's total revenue function?

Question

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The total revenue (TR) function is derived from the demand function. First, solve the demand function for P: P = (20,000 - Q) / 400. Then, TR = P * Q = [(20,000 - Q) / 400] * Q = 50Q - 0.0025Q².

Suppose Kate's Great Crete (KGC)has Annual Variable Costs of VC