Question #2409

How can I find Total Cost if I know Price, Quantity Demanded and Toal Revenue?

For example I have P=3 Q=1600 TR 4800 TC=5600(how did hey find TC)

For example I have P=3 Q=1600 TR 4800 TC=5600(how did hey find TC)

Expert's answer

You can not find Total Costs knowing only Price, Quantity and Total Revenue.

__Explanation__

Total cost = cost per unit x units produced

or

Total cost = cost per unit x units sold

or

Fixed costs + Variable costs

Total Revenue = Price*Quantity

Profit = Total Revenue - Total Costs =>**Total Costs = Total Revenue - Profit**

from given example (P=3 Q=1600 TR 4800) to get TC = 5600 Profit has to be -800, so we have losses, but we have not any information about it in task conditions

or

Total cost = cost per unit x units sold

or

Fixed costs + Variable costs

Total Revenue = Price*Quantity

Profit = Total Revenue - Total Costs =>

from given example (P=3 Q=1600 TR 4800) to get TC = 5600 Profit has to be -800, so we have losses, but we have not any information about it in task conditions

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