guz-ali / dem-profits

Finance Calculator. Find the best price and number of product to achieve maximum profits with your product through your formulas.

Dem-Profits

Which function do you want to input? AR, MR, AC, MC (Able to compute up to x^20 complexity.)

If you have functions in, you can also look through them. SEARCH

Find the best amount of products, best price, maximum profit. MAX

You can quit by typing QUIT

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Input the formulas of average revenue (AR), marginal revenue (MR), average cost (AC), marginal cost (MC). Now you can use these functions on MAX.

Find the best price and number of product to achieve maximum profits with your product through formulas. (use "max" for this) Then, select the formulas you want to use.

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Uses equilibrium logic from microeconomics.

Logic of equilibrium: The maximum profit will be at the point where marginal cost and marginal revenue are equal to each other. Using this point (number of product) find revenue and cost, then find the profit.

Given the formulas of Average Price and Average Cost, program finds the Marginal Price and Marginal Cost. (MR and MC can be manually given, too.)

Since our maximum profit will be at MR=MC, turn this into a function. MR-MC=0

Using NEWTON'S METHOD of Finding Roots, find the root. What we find here is the number of products. (our x number in the function)

We used NEWTON's METHOD to be able to compute very complex functions. (ex. y=3x^5+1400x^4-55x^3+200, note: this is not an actual formula)

Apply number of products (x) on AR and AC, and substract cost from revenue.

Finally, we found the maximum profit.

You now have the maximum profits => and the number of products and price to achieve that.