The demand function for a product is p=30–0.3q and the average cost function is ē=0.2q+5+40/q , where p= price, and q=quantity demand. Need explanition for the questions 2,3 and 4. 1. Find the intervals where the demand is inelastic, elastic, and the price for which the demand is unit elastic. 2. Find the quantity that maximizes the total revenue and the corresponding price. Interpret your result(important). 3. Find the quantity that minimizes the average cost function and the corresponding price. Interpret your results (important). 4. What are the quantity and the price that maximize the profit? What is the maximum profit? Interpret your result.
The demand function for a product is p=30–0.3q and the average cost function is ē=0.2q+5+40/q , where p= price, and q=quantity demand. Need explanition for the questions 2,3 and 4. 1. Find the intervals where the demand is inelastic, elastic, and the price for which the demand is unit elastic. 2. Find the quantity that maximizes the total revenue and the corresponding price. Interpret your result(important). 3. Find the quantity that minimizes the average cost function and the corresponding price. Interpret your results (important). 4. What are the quantity and the price that maximize the profit? What is the maximum profit? Interpret your result.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![The demand function for a product is p=30-0.39 and the average cost
function is c=0.2q+5+40/q , where p= price, and q=quantity demand.
Need explanition for the questions 2,3 and 4.
1. Find the intervals where the demand is inelastic, elastic, and the
price for which the demand is unit elastic.
2. Find the quantity that maximizes the total revenue and the
corresponding price. Interpret your result(important).
3. Find the quantity that minimizes the average cost function and the
corresponding price. Interpret your results (important).
4. What are the quantity and the price that maximize the profit? What
is the maximum profit? Interpret your result.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcb2170bf-41e2-483d-a190-2c87a8283536%2F0c1dbb5c-845a-4d1f-bf4e-df6ad0f49aa1%2Fvqb4ov_processed.png&w=3840&q=75)
Transcribed Image Text:The demand function for a product is p=30-0.39 and the average cost
function is c=0.2q+5+40/q , where p= price, and q=quantity demand.
Need explanition for the questions 2,3 and 4.
1. Find the intervals where the demand is inelastic, elastic, and the
price for which the demand is unit elastic.
2. Find the quantity that maximizes the total revenue and the
corresponding price. Interpret your result(important).
3. Find the quantity that minimizes the average cost function and the
corresponding price. Interpret your results (important).
4. What are the quantity and the price that maximize the profit? What
is the maximum profit? Interpret your result.
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