Article Type : Research Article
Authors : Xu R
Keywords : Maximum profit; Its quantity; Modelling; Economics; Modelling; TR(total revenue); TC(total cost); MR(marginal revenue); AR(average revenue) ; PR(profit) ; MC(marginal cost); High price
The trend to higher price share is searched in this
paper. It is found that the TR increases when Q increases. TR changes from
1,000 Yuan to 23,000 Yuan when Q becomes from 100 to 2200. Meanthimes AR
decreases from 22 Yuan to 16 Yuan. The PR and TC will increase when the Q
increases. The PR changes to summit 16,000 Yuan at the Q being 2600 and TC
becomes to 8,000 Yuan when Q becomes 2200..
The economics modelling
of maximum and its quantity at higher price has been established in order to
investigate their intrinsic relationship. Meantime it is important to estimate
the maximum of them in an enterprise manufacture and finance. In this study the
stock share is searched to try to find the intrinsic relationship. For the sake
of modelling the maximum profit and quantity in stock market the data is
arranged to solve the constant of linear and parabolic equation. Only we know
the price and quantity can the share be certain to do investment correctly. The
base data is important to determine the constant to model. It will be discussed
in detail because of its scientific method. It will give us convenience and
rapidness & correct result to help us to determine the investment. The
higher price is the destination of this study for us to search further. In
short the maximum profit and quantity on stock market is been built in this
study. Only if they are calculated can the further other relationship be drawn
to discuss further their relationship. The reasonable and scientific value can
be solved and other information can be gained for checking the right and more
information. The higher price share has been investigated here to see the
difference to low price [1-5].
When the condition has
been given as 1000 share with cost 8.6 Yuan and price 21 Yuan the constant and
equation will be completed which is exhibited below. According to the modelling
equation the maximum profit and quantity will be calculated. 100~1100 and
100~3600 is defined as below Figure 1~Figure 6 to discuss in detail. The former
is actual condition and the latter is the predicted. They are fit well to
modelling equation. The coefficient a and b & a, b, c has been solved
according to the modelling equation. In this study TR is total revenue; TC is
total cost; MR is marginal revenue; AR is average revenue; PR is profit; MC is
marginal cost; Q is quantity (Figure 1-3).
The Figure 1 & 2 shows TR, TC, TR, Pr, MR & AR tendency with different Q. TR increases when Q increases. TR changes from 1,000 Yuan to 10,000 Yuan when Q becomes from 100 to 1100 from Figure 2. Meantime AR decreases from 22 Yuan to 16 Yuan when Q becomes the same. At last MR maintains 21~11 Yuan. MC is the same value to MR. from Figure 1 it is known that PR and TC will increase when the Q increases. The PR changes from 1,000 Yuan to 10,000 Yuan when Q is from 100 to 1000 and TC becomes from 1,000 to 8,000 Yuan when Q becomes from 100 to 1100.
Figure 1: The graph of Pr and TC & Q=100~1100.
Figure 2: The graph of TR, AR, MR and MC & Q=100~1100.
Figure 3: The graph of PR and TC, Q=100~3600.
Figure 4: The graph of TR, MR, AR and MC & Q=100~3600.
Figure 5: The graph of TR, TC, PR, MR &AR and Q=100~1000.
Figure 6: The graph of TR, TC, PR, MR & AR and Q=100~3600.
Figure 3 shows that the
TC increases from 0 Yuan to 8,000 Yuan and finally 0 Yuan with parabolic
according to Q from 0 to 3600. PR will increase from 16,000 at 2600 Q. Figure 4
shows when the Q scope is 100~3600 the TR will increase from 2000 Yuan to
23,000 Yuan and AR will decrease from 22 Yuan to 16 Yuan. Figure 4 shows TR is
parabolic which maximum is 23,000 Yuan with Q=2200 (Figure 4-6).
The Figure 5 shows that TR, TC and PR is from
2,000, 1,000, 1,000 Yuan to 20,000Yuan, 12,000Yuan, 7,000Yuan respectively. MR
and AR decreases from 22, 22 Yuan to -14Yuan and 4Yuan respectively. They are
all proportional line with Q. The Figure 6 shows that the relationship between
TR, TC, PR, MR &AR and Q with the part of 0~1000 and 0~3600. It is known
that when Q=1700 the TC will be 8,000 Yuan which is the highest result here.
The extension curve TC, TR & PR?will be summit at
Q=3,500 with 8,000, 23,000 Yuan &16,000 Yuan respectively. The maximum
price is 1,120 Yuan and the quantity Q is 12,540 according to modeling. It is
included in this study conclusion however it must be pointed out to find. Here
PR fits to these curves TR & TC well in this study.
The quantity is 1120 in
maximum profit and the maximum profit is 12540 Yuan which is included in this
study. However the PR changes from 1,000 Yuan to 16,000 Yuan when Q is 2600
which is higher than mentioned above. It is predicted that TC is parabolic
which maximum is 8,000 Yuan with Q=1600.