Article Type : Research Article
Authors : Run Xu
Keywords : Maximum profit; Its quantity; Modelling; Economics; Modelling; TR; TC; MR; AR; PR; MC; Higher price
The trend to different cost and price in simulated stock market is searched in this paper. It is found that the TR increases when Q
increases. TR changes from 0 Yuan to 50,000 Yuan when Q becomes from 100 to 3600. Meanthimes AR decreases from 24 Yuan to
16 Yuan. The PR and TC will increase when the Q increases. The PR changes from 0 Yuan to 17,000 Yuan and TC becomes 35,000
Yuan when Q becomes 3600.
The economics modelling of maximum and its quantity at
different cost 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 different cost shares
have been investigated here to see the difference between them
[1-6].
For the sake of solving share in the stock market the modelling of
maximum profit and it’s quantity in this study has been built as
following two kinds of linear and parabolic formula according to
the economics principle.
To suppose the product demand function as
--- (1)
It has
--- (2)
So -- (3)
To suppose the total cost function as
--- (4)
It has
---?5?
And --- (6)
So -- (7)
Here P is the demand, Q is quantity, TC is cost, a?b &a1?b1?c1 is
the constant.
Received date: 07 May 2022; Accepted date: 10 May
2022; Published date: 16 May 2022
Citation: Xu R (2022). The Compare Modelling of
Maximum Profit and Its Quantity with Different Cost
and Demand in Stock Share on Economics V. SunText
Rev Mat Sci 3(1): 147.
DOI: https://doi.org/10.51737/2766-5100.2022.147
Copyright: © 2022 Xu R. This is an open-access
article distributed under the terms of the Creative
Commons Attribution License, which permits
unrestricted use, distribution, and reproduction in any
medium, provided the original author and source are
credited.
Run, SunText Rev Mat Sci (2022), 3:1
Citation: Xu R (2022). The Compare Modelling of Maximum Profit and Its Quantity with Different Cost and Demand in Stock Share on
Economics V. SunText Rev Mat Sci 3(1): 147.
When the condition has been given as 1000 share with cost and
price the equation will be completed which is exhibited below.
According to the modelling equation the maximum profit and
quantity will be calculated. Q=100~3600 is defined as below
Figure 1 to discuss in detail. It is the predicted curve. 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. According to the Table 1 shown below the coefficient
has been related in this paper. There are two conditions as 1 and 2
which differs from the other. The, b and a1, b1 & c1 is the
coefficients whilst TC, Q, Pr & P is the terminology as above.
The maximum quantity and profit is
Solved according cost equations for four conditions which will be
discussed in below.
The Figure 1(a~c) shows that TR, TC and Pr is from 2,000, 1,500,
1,500 Yuan to 50,000Yuan, 35,000Yuan, 17,000Yuan
respectively. MR and AR decreases from 24, 24 Yuan to 4 Yuan
and 16 Yuan 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 0~3600. It is known that when
Q=3600 the TC will be 35,000 Yuan which is the highest result
here. MR and AR is little about from 24 Yuan to 4 Yuan and 16
Yuan respectively. The maximum price of them is 4166 Yuan and
the quantity Q is 833 when TC is 20 Yuan according to
modelling, whilst they are 2702 Yuan and Q is 520 Yuan when
TC is 10. Since the high TC and price the former is higher than
10
15
20
25
30
35
40
-5
15
35
55
75
95
0 500 1000 1500 2000 2500 3000 3500 4000
thousand
Q
TR TC PR MR AR
TR, TC&PR Yuan
10
15
20
25
30
35
40
45
-5
15
35
55
75
95
115
0 500 1000 1500 2000 2500 3000 3500 4000
thousand
Q
TR TC PR MR AR
TR, TC&PR Yuan
Run, SunText Rev Mat Sci (2022), 3:1
Citation: Xu R (2022). The Compare Modelling of Maximum Profit and Its Quantity with Different Cost and Demand in Stock Share on
Economics V. SunText Rev Mat Sci 3(1): 147.
the later. It is included in this study conclusion however it must
be pointed out to find. The compare value has been known that
the all the data will increase with the same Q=100~3600 to
compare the different cost value when it is 10 Yuan cost and 20
Yuan cost with the same cost of 25. As it is known that PR
increases arrangement from 23,000 to 38,000 Yuan the difference
to be 15,000 Yuan. From the graph above it is found the
maximum profit and quantity is not consistent well. So the other
factor will be hidden here which is concluded. The one which is
solved in Table 1 is lower somewhat.
The quantity is 3600 in maximum profit and the maximum profit
is 17,000 Yuan which is concluded in this study. The PR changes
from 1,000 Yuan to 17,000 Yuan when Q is from 100 to 3600. It
is predicted that TC is parabolic which maximum is 35,000 Yuan
with Q=3600 meantime the TR increase from 0 to 50,000 Yuan
with Q =0~3600.