1. The (inverse) demand curve for the services of Oakland Pest Control Co. (OPCC) is given by P= $1000 - 2Q, where P is in dollars, and Qis residences/month. The cost equation is given by C = 2000 + 30Q. a. Sketch and label OPCC's demand and marginal revenue curves, and determine the maximum revenue it can make. b. What are OPCC's profit-maximizing price and output levels? c. How much profit does OPCC make if it services 100 residences per month?

1. The (inverse) demand curve for the services of Oakland Pest Control Co. (OPCC) is given by P= $1000 - 2Q, where P is in dollars, and Qis residences/month. The cost equation is given by C = 2000 + 30Q. a. Sketch and label OPCC's demand and marginal revenue curves, and determine the maximum revenue it can make. b. What are OPCC's profit-maximizing price and output levels? c. How much profit does OPCC make if it services 100 residences per month?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

1. The (inverse) demand curve for the services of
Oakland Pest Control Co. (OPCC) is given by
P= $1000 - 2Q, where P is in dollars, and Q is
residences/month.
The cost equation is given by C = 2000 + 30Q.
a. Sketch and label OPCC's demand and marginal
revenue curves, and determine the maximum revenue
it can make.
b. What are OPCC's profit-maximizing price and
output levels?
c. How much profit does OPCC make if it services
100 residences per month?

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