The demand function for product is p = -4q + 400 and the average cost for producing q units 500 is c = 37q+ 40 + where p= price, and q= quantity demand. 9 q 1. 2. 3. Compute the point elasticity of demand and find the intervals where the demand is inelastic, elastic, and the price for which the demand is unit elastic. Find the quantity that maximizes the total revenue and the corresponding price. Interpret your result. Find the quantity that minimizes the average cost function and the corresponding price. Interpret your results.

The demand function for product is p = -4q + 400 and the average cost for producing q units 500 is c = 37q+ 40 + where p= price, and q= quantity demand. 9 q 1. 2. 3. Compute the point elasticity of demand and find the intervals where the demand is inelastic, elastic, and the price for which the demand is unit elastic. Find the quantity that maximizes the total revenue and the corresponding price. Interpret your result. Find the quantity that minimizes the average cost function and the corresponding price. Interpret your results.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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