Here is the question!!! If I get a satisfactory answer. I will purchase membership within 12 hours. The manufacturer of electronic fans is trying to decide what price to set for itsproduct.The demand and cost function are assumed to be as follows:P = 90-2.5QTC= 80 +60Q-1.5Q²Questions:(a) What price should the company charge if it wants to maximize its profit inthe short run? What is the optimal quantity for the electronic fan following thisoptimal price?(b) What price should it charge if it wants to maximize its revenue in theshort run? What is the optimal quantity for the electronic fan under this price?What will be the maximized revenue?

Given information: P = 90 - 2.5Q ------> Demand function TC = 80 + 60Q - 1.5Q2 ---------> Cost…

Answered: The manufacturer of electronic fans is…

The manufacturer of electronic fans is trying to decide what price to set for its product. The demand and cost function are assumed to be as follows: P = 90-2.5Q TC= 80 +60Q-1.5Q²

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Here is the question!!! If I get a satisfactory answer. I will purchase membership within 12 hours.

The manufacturer of electronic fans is trying to decide what price to set for its
product.
The demand and cost function are assumed to be as follows:
P = 90-2.5Q
TC= 80 +60Q-1.5Q²
Questions:
(a) What price should the company charge if it wants to maximize its profit in
the short run? What is the optimal quantity for the electronic fan following this
optimal price?
(b) What price should it charge if it wants to maximize its revenue in the
short run? What is the optimal quantity for the electronic fan under this price?
What will be the maximized revenue?

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