The demand and cost function for a company are estimated to be as follows: P = 100 - 80QTC = 50 + 80Q -10Q^2 + 0.6Q^3A. What price should the company charge if it wants to maximize its profit in the short run?B. What price should it charge if it wants to maximize its revenue in the short run? Quantity Total CostTotal Cost50121500175450321640042483505275300300250732620083571503971001045050 QTotalMarginalFixedVariableTotalMarginalQuantityPriceRevenue RevenueCostCostCostCostProfit1005050-501929292507112171-2984168765112417554-73762286052164216411246827244531952483224560300285422127527255231212552453002512744308-45627032626-18836288-205730035731-69928252-365833939740-1451020200-525939145053-250

definitions: Demand function: The demand function represents the connection between the amount…

The demand and cost function for a company are estimated to be as follows: P = 100 - 80Q TC = 50 + 80Q -10Q^2 + 0.6Q^3 A. What price should the company charge if it wants to maximize its profit in the short run? B. What price should it charge if it wants to maximize its revenue in the short run?

The demand and cost function for a company are estimated to be as follows: P = 100 - 80Q TC = 50 + 80Q -10Q^2 + 0.6Q^3 A. What price should the company charge if it wants to maximize its profit in the short run? B. What price should it charge if it wants to maximize its revenue in the short run?

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

The demand and cost function for a company are estimated to be as follows:

P = 100 - 80Q

TC = 50 + 80Q -10Q^2 + 0.6Q^3

A. What price should the company charge if it wants to maximize its profit in the short run?

B. What price should it charge if it wants to maximize its revenue in the short run?

Quantity Total Cost
Total Cost
50
121
500
175
450
3
216
400
4
248
350
5
275
300
300
250
7
326
200
8
357
150
397
100
10
450
50

Q
Total
Marginal
Fixed
Variable
Total
Marginal
Quantity
Price
Revenue Revenue
Cost
Cost
Cost
Cost
Profit
100
50
50
-50
1
92
92
92
50
71
121
71
-29
84
168
76
51
124
175
54
-7
3
76
228
60
52
164
216
41
12
4
68
272
44
53
195
248
32
24
5
60
300
28
54
221
275
27
25
52
312
12
55
245
300
25
12
7
44
308
-4
56
270
326
26
-18
8
36
288
-20
57
300
357
31
-69
9
28
252
-36
58
339
397
40
-145
10
20
200
-52
59
391
450
53
-250

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