Total Cost Function: C = 3Q^3 + 6Q^2 - 7Q + 120 Demand

Equation: Q = 130 - 2P

SCRIPT:

To find the level of Q which total cost is minimum, we need to take the derivative of the total
cost function with respect to Q, and set it equal to zero.

C = 3Q^3 + 6Q^2 - 7Q + 120

C/Q = 9Q^2 + 12Q - 7

Setting C/Q equal to zero and solving for Q, we get:

9Q^2 + 12Q - 7 = 0

Using the quadratic formula, we get:

Q = (-12 ± √(12^2 - 4(9)(-7))) / (2*9)

Q = (-12 ± √432) / 18

Q = (-12 ± 6√3) / 9

Q = -4/3 or Q = 1/3

Since Q represents quantity, it cannot be negative. Therefore, Q = 1/3 is the level of Q which
total cost is minimum.

To find the corresponding price, we can use the demand equation:

Q = 130 - 2P

1/3 = 130 - 2P

P = (130 - 1/3) / 2

P = 64 2/3

Therefore, the level of Q which total cost is minimum is Q = 1/3 and the corresponding price is P
= 64 2/3.
 1. Find the level of Q which total cost is maximum
2. Find the level of Q which total cost is maximum

C = 3Q3 + 6Q2 - 7Q + 120

C/Q = 9Q2 + 12Q - 7

Setting C/Q equal to zero and solving for Q:

9Q2 + 12Q - 7 = 0

We use the quadratic formula to solve for Q:

Q = (-12 ± sqrt (12^2 - 4(9) (-7))) / (2(9))

Q = (-12 ± sqrt (468)) / 18

Q = (-12 ± 2sqrt (117)) / 18Q = -0.40 or Q = 0.96.

The level of Q, which total cost is maximum is approximately 0.96.

To find the corresponding price, we can use the demand equation:

Q = 130 - 2P

Substituting Q = 0.96, we get:

96 = 130 - 2P

2P = 130 - 0.96

Therefore, the level of Q which total cost is maximum is approximately 0.96

CONCLUSION AND RECOMMENDATION:
Bamgecox company is experiencing deflation that causes discourages of
productive investment, a sustained decrease in the price of goods. To remain
competitive, the company must determine cost, average cost, revenue, profit,
and unit count. The production challenges involve balancing high costs with
product demand, allowing for potential unsatisfaction, and maintaining a set
distance from rewards if too many items are produced
(NOT INCLUEDED BUT CAN HELP IN REPORTING)

Conclusion and recommendations of this:

PROBLEM STATEMENT

Bamgecox company is experiencing deflation that causes discourages of productive investment,

a sustained decrease in the price of goods. With the help of economic concepts, it will help the
company to find the cost, average cost, revenue, profit, and quantity of units to find a solution to
how the business will be competitive to the market.

Our company, Bamgecox Inc., manufactures an item that is in high demand. Nevertheless, this
product's production costs are too very significant. Our total cost function C = 3Q³ + 6Q² - 7Q
+120, where Q is the number of items produced. In addition, Q = 130 -2P, where P is the cost of
our products, represents our demand function. The production difficulties we are facing, in this
case, are finding a way to steadily the high production costs with the requests for our item. We
have given the possibility of not being able to meet requests and maintaining a calculated
distance from out on potential benefits in case we make too much of products. Anyways, in case
we produce too many things, we may not be able to offer them all and get as well much stock.

To solve this problem, we must carefully estimate evaluate requests to decide the production
level that would maximize our profit. This may include changing our cost directions, investing
funds in more favorable means of production, or looking at new markets for the goods we
produce. We will warrant the long period success of our business by carefully correctly what we
produce in taking into consideration market demand and cost concerns.

In conclusion, Bamgecox Inc. is facing deflation and high production costs for their in-demand
product. To find a solution, we must carefully evaluate market demand and cost concerns to
determine the production level that maximizes profit. The company's total cost function, demand
equation, and total, marginal, and average functions of cost and revenue are analyzed. The level
of Q which maximizes revenue is, while the level of Q which minimizes total cost is and the
level which maximizes total cost is approximately By considering these factors and potentially
investing in more favorable means of production or exploring new markets, Bamgecox Inc. can
ensure the long-term success of their business.