2012年11月6日星期二

Assignmet 6: Tipping (braking) point of a product life cycle.

Assignmet 6: Tipping (braking) point of a product life cycle.

TC=Q^3-12Q^2+60Q

According to the TC function, we can get the MC and AC function.
MC=3Q^2-24Q+60
AC=Q^2-12Q+60

When we have those product function, we can draw the graph.
When MC=AC, we can get Q=6 and MC=AC=24, then when Q=6 TC=144.
If Q<6, the TC graph is degressive increasing.
If Q>6, the TC graph is progressive increasing.
So the Point (6,144) is the tipping point of  TC.
We can get the tangent could assume be y=24x.

y=24+25 is the point (1.49) tangent of TC. It paralla with y=24x.


After point(6.144). the MC>AC, the productor could consider keep on product, because the cost is progressive increasing.

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