Gatheru and Kabiru Certified Public Accountants have recently started to give business advise to their
clients. Acting as consultants, they have estimated the demand curve of a clients firm to be;
Where AR is average revenue in millions of shillings and Q is the output in units.
Investigation of the client firm’s cost profile shows that marginal cost (MC) is given by:
MC=Q2-28Q+211(In million shillings)
Further investigations have shown that the firm’s cost when not producing output is sh.10 million.
i) The equation of total cost
ii) The equation of total revenue
iii) An expression for profit.
iv) The level of output that maximizes profit
v) The equation of marginal revenue.