A small publishing company is releasing a new book. The production costs will include a one-time fixed cost for editing and an additional cost for each book printed. The total production cost (in dollars) is given by the function, where is the number of books. The total revenue earned (in dollars) from selling the books is given by the function. Let be the profit made (in dollars). Write an equation relating to. Simplify your answer as much as possible.

Profit Function = P. Q - [A + C (Q) ]

Explanation:

Profit = Total Revenue - Total Cost

Let Q be the quantity

Total Revenue = Price x Quantity = P X Q

Total Cost = Total Fixed Cost + Total Variable Cost

= A + C (Q);

where A = Autonomous fixed cost, irrespective of level of output, C (Q) is functional form of variable cost in terms of Quantity of production

Profit = P. Q - [A + C (Q) ]

Letting : P = 10, C = 2Q, Q = 3, A = 2

Profit would be : P. Q - [A + C (Q) ]

= (10) X (3) - [ 2 + 2 (3) ]

= 30 - (2 + 6) = 30 - 8

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