A company has established that the relationship between the price for one of its products is approximately p = 88.5 - 0.08D0.75 In addition there is a fixed cost of $45,000 per year and the variable cost to manufacture the product is $45 per unit. What level of demand maximizes the total revenue? Ans. is Blank 1 What level of demand maximizes the total profit for this product? Ans. is Blank 2 Blank 1 Add your answer Blank 2 Add your answer
A company has established that the relationship between the price for one of its products is approximately p = 88.5 - 0.08D0.75 In addition there is a fixed cost of $45,000 per year and the variable cost to manufacture the product is $45 per unit. What level of demand maximizes the total revenue? Ans. is Blank 1 What level of demand maximizes the total profit for this product? Ans. is Blank 2 Blank 1 Add your answer Blank 2 Add your answer
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter11: Price-searcher Markets With High Entry Barriers
Section: Chapter Questions
Problem 14CQ
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