The price p (in dollars) and the quantity q sold of a certain product obey the demand equation q − 800 - 20P and 0 < p < 40 (answer iv and v) (i) Express the revenue R as a function of q. (ii) What is the revenue if 20 units are sold? (iii) What quantity q maximizes revenue? What is the maximum revenue? (iv) What price should the company charge to maximize revenue? (v) What price should the company charge to earn at least $3500 in revenue?

The price p (in dollars) and the quantity q sold of a certain product obey the demand equation q − 800 - 20P and 0 < p < 40 (answer iv and v) (i) Express the revenue R as a function of q. (ii) What is the revenue if 20 units are sold? (iii) What quantity q maximizes revenue? What is the maximum revenue? (iv) What price should the company charge to maximize revenue? (v) What price should the company charge to earn at least $3500 in revenue?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 1.5CE

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Question

The price p (in dollars) and the quantity q sold of a certain product obey the demand
equation
q − 800 - 20P and 0 < p < 40 (answer iv and v)

(i) Express the revenue R as a function of q.
(ii) What is the revenue if 20 units are sold?
(iii) What quantity q maximizes revenue? What is the maximum revenue?
(iv) What price should the company charge to maximize revenue?
(v) What price should the company charge to earn at least $3500 in revenue?

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