ACCA F5 Optimal pricing – equations
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Hi John
I went to the lecture solutions. what is the meaning of dr/dq= marginal cost
What is the d ? Then for total costs its dc/dq what are these symbols standing for?
dr, dq, & dc
Thanks in advance
They are symbols relating to differentiation (which you should have studied at school – some people use a little triangle symbol instead of ‘d’). However you cannot be examined on differentiation in the exam and so it is nothing to worry about. As I explain in the lecture, you are given the relevant formula and are not expected to prove them.
Hi John
Thank you so much for your help, really appreciate
You are welcome 🙂
Dear Sir,
the answer at the end of the notes is different than mine. Why is P=120-0.001Q?
Is it not 100=a-20000b which then gives a = 300? and so on
Oh My 0.001 times 20000 is 20 not 200.
I am sorry excuse my carelessness!
No problem 🙂
excellent explanation, so helpful!
Thank you for your comment 🙂
Thank you.
You are welcome 🙂
Yes it is true!
The workings are in the free Lecture Notes (along with the answers to all of the examples).
Nice lecture!Thank you sir!!!
Dear Sir,
I have spend about 3 days to understand this chapter (Pricing) using BPP book but even couldn’t understand anything at the end, however, they way Sir John has explained and the examples he used, it was incredible. I am really very thankful to opentuition for providing free tuitions by the great tutor.
Thank you very much Sir John. God bless you. 🙂
Thank you for the comment 🙂
Thanks John. Well understood. They most important thing to do is to find the values of ‘a’ and ‘b’ as demonstrated in the presentation and then solve for ‘p’ and ‘q’. We then use the values of ‘p’ and ‘q’ to calculate the maximum contribution/profit as the case maybe.
True!
Yes – it is correct 🙂
(The answers to all the examples are printed in the free lecture notes – look at the contents page to find them)
I find them. Thanks.
You are welcome 🙂
Good day.
In example 6 I calculate the selling price $62.5 p.u.
demand quantity 57500 units
profit $3206250
Is it true? Thanks.