c. Based on other considerations, the firm's management will only consider price alter- natives of $30, $40, and $50. Use your model from part (b) to detemine the price al- temative that will maximize the total revenue. d. What are the expected annual demand and the total revenue corresponding to your recommended price?
c. Based on other considerations, the firm's management will only consider price alter- natives of $30, $40, and $50. Use your model from part (b) to detemine the price al- temative that will maximize the total revenue. d. What are the expected annual demand and the total revenue corresponding to your recommended price?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Pls answer and provide solution
![c. Based on other considerations, the firm's management will only consider price alter-
natives of $30, $40, and $50. Use your model from part (b) to determine the price al-
temative that will maximize the total revenue.
d. What are the expected annual demand and the total revenue coresponding to your
recommended price?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb5cbd024-1aa7-42df-a4d2-6fff5560bb0e%2F95a53e31-21c0-4b78-93b1-39c0d9cfeb96%2Fbd1wro_processed.jpeg&w=3840&q=75)
Transcribed Image Text:c. Based on other considerations, the firm's management will only consider price alter-
natives of $30, $40, and $50. Use your model from part (b) to determine the price al-
temative that will maximize the total revenue.
d. What are the expected annual demand and the total revenue coresponding to your
recommended price?
![11. For most products, higher prices result in a decreased demand, whereas lower prices result
in an increased demand. Let
d = annual demand for a product in units
p = price per unit
Assume that a firm accepts the following price-demand relationship as being realistic:
d = 800 – 10p
where p must be between $20 and $70.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb5cbd024-1aa7-42df-a4d2-6fff5560bb0e%2F95a53e31-21c0-4b78-93b1-39c0d9cfeb96%2F69fidzp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:11. For most products, higher prices result in a decreased demand, whereas lower prices result
in an increased demand. Let
d = annual demand for a product in units
p = price per unit
Assume that a firm accepts the following price-demand relationship as being realistic:
d = 800 – 10p
where p must be between $20 and $70.
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