Q.5 Given the demand functions, (i) Q = 150 − 0.5P, (ii) P = 80 − 2Q, (iii) P = 45 (a) Write down the equations for TR. (b) Calculate the number of units which must be sold to maximize TR. Calculate the maximum TR. (c) State the values of Q at which MR and AR are zero.

Q.5 Given the demand functions, (i) Q = 150 − 0.5P, (ii) P = 80 − 2Q, (iii) P = 45 (a) Write down the equations for TR. (b) Calculate the number of units which must be sold to maximize TR. Calculate the maximum TR. (c) State the values of Q at which MR and AR are zero.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter12: More Realistic And Complex Pricing

Section: Chapter Questions

Problem 12.1IP

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Q.5 Given the demand functions,

(i) Q = 150 − 0.5P, (ii) P = 80 − 2Q, (iii) P = 45

(a) Write down the equations for TR.

(b) Calculate the number of units which must be sold to maximize TR. Calculate the maximum TR.

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