A firm produces a steel bar. When the price of the steel bar is $ 30,000, the quantity demanded is 8 metric tons, a 100% change in the price would change the quantity demanded by 25%. 1. How much would be the maximum total revenue of the firm? 2. What is the demand function of the firm? (Use the variable Q for the quantity demanded and the variable P for the price; no currency; use fraction form for the slope) 3. What is the marginal revenue function of the firm? (Use the variable Q for the quantity and the variable MR for the marginal revenue; no currency)
A firm produces a steel bar. When the price of the steel bar is $ 30,000, the quantity demanded is 8 metric tons, a 100% change in the price would change the quantity demanded by 25%. 1. How much would be the maximum total revenue of the firm? 2. What is the demand function of the firm? (Use the variable Q for the quantity demanded and the variable P for the price; no currency; use fraction form for the slope) 3. What is the marginal revenue function of the firm? (Use the variable Q for the quantity and the variable MR for the marginal revenue; no currency)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter3: Demand Analysis
Section: Chapter Questions
Problem 5E
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A firm produces a steel bar. When the price of the steel bar is $ 30,000, the quantity demanded is 8 metric tons, a 100% change in the price would change the quantity demanded by 25%.
1. How much would be the maximum total revenue of the firm?
2. What is the demand function of the firm? (Use the variable Q for the quantity demanded and the variable P for the price; no currency; use fraction form for the slope)
3. What is the marginal revenue function of the firm? (Use the variable Q for the quantity and the variable MR for the marginal revenue; no currency)
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