The price/demand function of a company is p=42-0.001D and the cost function is 30D+1200. Determine the following: The optimal demand = The optimal value = The demand that will give the highest revenue = The highest revenue value = Breakeven Points = Range of Profitability =

The price/demand function of a company is p=42-0.001D and the cost function is 30D+1200. Determine the following: The optimal demand = The optimal value = The demand that will give the highest revenue = The highest revenue value = Breakeven Points = Range of Profitability =

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 5MC

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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?
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The price/demand function of a company is p=36-0.001D and the cost function is 20D+1000. Determine the following: 1. The optimal demand = Blank 1 units 2. The optimal value = $ Blank 2 3. The demand that will give the highest revenue = Blank 3 units 4. The highest revenue value = $ Blank 4 5. Breakeven Points = Blank 5 and Blank 6 units 6. Range of Profitability = From Blank 7 to Blank 8 units Note: Round your final answer in whole number. Do not write the Unit of Measure (UOM). Do not put a comma. Blank 1 Add your answer Blank 2 Add your answer Blank 3 Add your answer Blank 4 Add your answer Blank 5 Add your answer Blank 6 Add your answer Blank 7 Add your answer Blank 8 Add your answer
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