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P a bQ
P 200 0.5(150)
200 75 125
aP
When P a bQ then Q
b
200 20 180
Q 360
0.5 0.5
www.wiley.com/college/Bradley John Wiley and Sons 2013
Given the average cost function C = a b/Q
Make Q the subject of the formula.
b
It is easier to work with a positive Q-term C a
Q
b
Divide both sides by (a - C) Q
a C
b
Q
a C
www.wiley.com/college/Bradley John Wiley and Sons 2013
Given the average cost function C = a b/Q
b
C a
Q
Qb aP
(Q b) 2
aP
2
Square each side
(Q b) 2 aP
Divide both sides by a
(Q b) 2
P
a
www.wiley.com/college/Bradley John Wiley and Sons 2013
Evaluate Q when a = 10, b = 20 and P = 40
Q 10(40) 20
Q 400 20 20 20 0
(4 20) 2
Hence P 576
10
www.wiley.com/college/Bradley John Wiley and Sons 2013
Given the value of sales, S as a function of time, t (weeks):
Make t the subject of the formula.
S at 2 b
To isolate the t-term bring +b to the other side
S b
t2 Take the square root of each side
a
S b S b
t t
a a
S at 2
b
S b
S at 2 b then t
a
20 10 10
Hence t 25 5
0.4 0.4
www.wiley.com/college/Bradley John Wiley and Sons 2013