NON-LINEAR FUNCTION
AND THEIR APPLICATION
IN ECONOMICS
Group 2
INTRODUCTION
SALWA AULIA RUMAN (23080324120)
AHMED RASYED RIDHO A (23080324117 )
TAHTA AMALI HAQ N (23080324135)
ELLEICEA FALERI S (23080324125)
ULIMA UBHAYAHITA (23080324054)
TAUFIQAH ADILAH Z (23080324097)
TABLE OF CONTENT
CALCULATE AND ANALYZE
MARKET BALANCE AFTER TAXES
AND SUBSIDIES FOR NON-
LINEAR FUNCTIONS
CALCULATE AND ANALYZE COST,
REVENUE, BEP FUNCTIONS FOR
NON-LINEAR FUNCTIONS
MARKET EQUILIBRIUM
INFLUENCE BY
TAX AND SUBSIDI
NON LINEAR
MARKET
EQUILIBRIUM
When there is a market equilibrium, there will be
an equilibrium price with an equilibrium quantity.
Mathematically, market equilibrium occurs if :
Qd = Qs or Pd = Ps
Description :
Qd = Quantity demand
Qs = Quantity supply
Pd = Price demand
Ps = Price Supply
EQUILIBRIUM AFTER TAX
Tax influence to market equilibrium, that will increase the sales price. Tax in
economic qualified two kinds, namely :
Specific Tax = tax a tax imposed on goods
produced by producers. the tax on the Proportional Tax
goods is passed on to the consumer.
The Formulation :
The Formulation :
1. Demand function before tax => Ps = f (Q) price
1. Demand function before tax => Ps = f (Q) price Qs = f (P) quantity
Qs = f (P) quantity
2. Demand function after tax => Ps = f (Q)(1+r) price
2. Demand function after tax => Pst = f (Q) + t price Qst = f ( P/t.p) quantity
Qst = f (P) - t quantity note : r = tax persentase (%)
note : t = tax in unit
SPESIFIC TAX
Example :
demand function for a product Pd = 20 - Q and supply function Ps = 0,5Q + 5.
If the government enforces sales tax Rp 3/unit. calculate the equilibrium
price before tax and the equilibrium price after tax!
PROSENTASE TAX
Example :
demand function for a product Pd = 20 - Q and supply function Ps = 0,5Q + 5. if the
government enforces sales tax 20%. calculate the equilibrium price before tax and the
equilibrium price after tax!
EQUILIBRIUM AFTER SUBSIDIES
A policy of subsidizing goods by the government in order to allow producers to sell at a lower price
than they otherwise would, so that consumers can fulfill their needs at an affordable price. with
the provision of subsidies, the government expects the equilibrium price to be lower and the
number of goods purchased by consumers to increase.
The Formulation :
Demand function before tax => Ps = f (Q) price
Qs = f (P) quantity
Demand function after tax => Pss = f (Q) - s price
Qss = f (P+s) quantity
note : s = subsidi
EQUILIBRIUM AFTER SUBSIDIES
Example :
Demand function for a product Qd = -2P + 100 and supply function Qs = 3P - 120. then the government
subsidizes the goods by Rp 2/unit. calculate the equilibrium price before tax and the equilibrium price
after tax!
CALCULATE AND
ANALYZE
COST, REVENUE, BEP
FUNCTIONS FOR NON-
LINEAR FUNCTIONS
CONCEPT OF COST, REVENUE, AND BEP
Cost, revenue, and BEP analysis are vital tools used by managers to make informed decisions about pricing,
production levels, and profitability. The concept revolves around understanding the relationship between costs
incurred, revenues generated, and the point at which a company neither makes a profit nor incurs a loss, known
as the break-even point.
Cost Function = > Total cost (TC) is a cost that is Example :
fixed regardless of the amount of output produced, A company in producing an output must incur fixed
so this fixed cost (FC) is a certain constant. and costs of Rp 300,000,000, - while the variable costs
variable (VC) cost is a cost that is not fixed that must be incurred are shown by the equation VC
depending on the amount of output produced. = 5.000Q. at some point the amount of output
The Formulation of Cost Function : produced is 50,000 / unit.
TC = FC + VC
AVC = FC / Q Description :
AVC = VC/Q TC : Total Cost
AC = TC/Q FC : Fixed Cost
VC : Variable Cost
AFC : Average Fixed Cost
AVC : Average Variable Cost
AC : Average Cost
Q : Average Fixed Cost ( From amount
output of production )
CONCEPT OF COST, REVENUE, AND BEP
Revenue Function => is one of the important functions in an
organization or company related to revenue management. The role of
this function plays a role in managing company revenue so that it is well
organized.
Example :
A company A sells its products at a price of Rp
The Formulation of Cost Function:
8.000 / unit. at one time the company managed to
TR = f(Q) =PQ
sell 5.000 units, calculate the revenue function
obtained by company A!
Description:
TR: Total Revenue
P: Price per unit
Q: Quantity sold (amount output was selling)
CONCEPT OF COST, REVENUE, AND BEP
Break Even Point : a break-even point or a situation where a company does not make a profit
and does not make a loss. mathematically it is said that the profit or loss is 0.
Example :
Company B has a function TC = 300.000.000 + 6.000Q and TR = 10.000Q.
Calculate:
1. how much profit or loss if the company is only able to sell 120.000 units
of output.
2. the break even point level.
CALCULATION OF COST, REVENUE, AND
BEP FOR NON-LINEAR FUNCTIONS
The calculation of cost, revenue, and BEP for non-linear functions involves determining the total cost
(TC) and total revenue (TR) functions based on varying levels of production volume (Q). Typically, the
total cost function is expressed as:
TC(Q)=FC+VC×QTC(Q)=FC+VC×Q
TC(Q) represents the total cost at a production volume of QQ.
FC denotes the fixed costs.
VC signifies the variable costs per unit.
On the other hand, the total revenue function is often related to the sales volume and unit selling
price (P), and it can be expressed as:
TR(Q)=P×QTR(Q)=P×Q
The break-even point occurs when total revenue equals total cost, i.e., TR(Q)=TC(Q)TR(Q)=TC(Q).
However, due to the non-linear nature of the functions involved, finding the break-even point
analytically may not always be feasible. Therefore, numerical methods such as iteration or
graphical analysis are often employed to determine the break-even point accurately.
APPLICATIONS OF COST, REVENUE, AND BEP ANALYSIS FOR
NON-LINEAR FUNCTIONSFTER SUBSIDIES
Cost, revenue, and BEP analysis for non-linear functions find applications across various
industries and business scenarios. Some examples include:
Technology Industry: Technology companies often deal with non-linear cost Example: Consider a software development
structures, especially in research and development activities. Analyzing cost, company that incurs fixed costs of $50,000
revenue, and BEP helps them determine the viability of new products and per month and variable costs of $10 per unit
innovations. for a new software product. The company sells
the software for $100 per unit. The total
revenue function can be expressed as:
Manufacturing Sector: Manufacturers encounter non-linear relationships
between costs, revenues, and production volumes due to factors like economies
of scale and variable input costs. Analyzing these relationships aids in optimizing
production levels and pricing strategies.
5 PRACTICE QUESTION
1. Diketahui persamaan fungsi permintaan dan penawaran : Qd = - 4P + 400 dan Qs = 5P
- 10. jika pemerintah mengenakan pajak Rp 5 per unit. Hitunglah keseimbangan pasar
setelah pajak dan grafiknya!
2. Diketahui persamaan fungsi permintaan dan penawaran : Qd = 2 - 0,5P dan Qs = -5 +
4P, jika pemerintah memberikan subsidi Rp 2 per unit. Hitunglah keseimbangan pasar
setelah subsidi grafiknya!
3. Perusahaan Sepatu Baru Alhamdulillah dalam memproduksi memiliki pengeluaran
biaya tetap (FC) = Rp 240.000.000, dan biaya variabel (VC) = 6.000Q. pada suatu
saat perusahaan jumlah output yang diproduksi sebesar 120.000 satuan, maka
hitunglah!
Total Cost
Average Fixed Cost
Average Variable Cost
Average Cost
4. sebuah pabrik Tas dengan merek “ GUGGI “ memiliki biaya tetap (FC) = 1.000.000,-
,biaya variabel untuk membuat sebuah tas sebesar Rp 500. jika tas tersebut dijual dengan
harga Rp 1.000,-. Maka hitunglah Fungsi biaya total (TC), Fungsi penerimaan total (TR)
dan Variable cost (VC)!
5. NEXT SLIDE =>
5 PRACTICE QUESTION
5. Perusahaan kasur “Levi” memiliki biaya tetap operasional sebesar
TC = 240.000.000 + 6.000Q dan TR =8.500Q. Maka berapa
keuntungan/kerugian jika perusahaan hanya mampu menjual output
sebanyak 140.000 satuan dan hitunglah tingkat BEP nya!
ANY QUESTION?
THANK YOU !!
THANK YOU !!
