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The marginal revenue function is the first derivative of the total revenue function or MR = 120 - Q. Note that in this linear example the MR function has the same y-intercept as the inverse demand function, the x-intercept of the MR function is one-half the value of the demand function, and the slope of the MR function is twice that of the ...
More formally, linear programming is a technique for the optimization of a linear objective function, subject to linear equality and linear inequality constraints. Its feasible region is a convex polytope , which is a set defined as the intersection of finitely many half spaces , each of which is defined by a linear inequality.
P(Q) = inverse demand function, and thereby the price at which Q can be sold given the existing demand C(Q) = total cost of producing Q. = economic profit. Profit maximization means that the derivative of with respect to Q is set equal to 0: ′ + ′ = where
The marginal revenue function is the first derivative of the total revenue function; here MR = 120 - Q. Note that the MR function has the same y-intercept as the inverse demand function in this linear example; the x-intercept of the MR function is one-half the value of that of the demand function, and the slope of the MR function is twice that ...
The set of solutions of a real linear inequality constitutes a half-space of the 'n'-dimensional real space, one of the two defined by the corresponding linear equation. The set of solutions of a system of linear inequalities corresponds to the intersection of the half-spaces defined by individual inequalities.
When a non-price determinant of demand changes, the curve shifts. These "other variables" are part of the demand function. They are "merely lumped into intercept term of a simple linear demand function." [14] Thus a change in a non-price determinant of demand is reflected in a change in the x-intercept causing the curve to shift along the x ...
Generalizations of the Farkas' lemma are about the solvability theorem for convex inequalities, [4] i.e., infinite system of linear inequalities. Farkas' lemma belongs to a class of statements called "theorems of the alternative": a theorem stating that exactly one of two systems has a solution. [5]
The feasible regions of linear programming are defined by a set of inequalities. In mathematics, an inequality is a relation which makes a non-equal comparison between two numbers or other mathematical expressions. [1] It is used most often to compare two numbers on the number line by their size.