If I have a total cost function of TC=100+4q^2, how do I find the minimum price for a profit? I solve TC=0?
+37084
Do you have any more info? Like quantity information? I do not think I can answer this with the info given, but I will try
fixed costs are 100 so if you make 1 widget it will cost 104 which would be the break even price
2 widgets would cost you 116 and the break even would be 58
5 widgets would cost you 200 and the break even would be 40
10 widgets would be 500 50
You see? without quantity information I don't think I can answer your minimum price for a profit.....
Though I can say the cheapest widget would be at a quantity of 5 at break-even price of 40 Maybe that is the answer for which you are looking?
if you graph (100 + 4x^2)/ x (this is the price per widget) you will see the minimum cost per widget point of 40 at quantity of 5
Anyone else care to chime in???
