The demand equation for the deluxe marble kit produced byWhoville Marble Works (WMW) isp = 600 - 3q -0.01q²where p is the price WMW sets for the kit and q is the number ofkits that they sell in a week.(a) Find the price that WMW should set to maximize their weeklyrevenue, the corresponding revenue maximizing output and theirmaximum weekly revenue.Round your answers to 2 decimal places.(b) Show how you know that the revenue you found in (a) isWMW's absolute maximum weekly revenue. This continues the previous question.WMW's cost of producing q deluxe marble kits per week isc = 225q + 2500.(a) Find the price that WMW should set to maximize theirweekly profit, the corresponding profit maximizing outputand their maximum weekly profit.(b) Show how you know that the profit you found in (a) isWMW's absolute maximum weekly profit.(c) The Whoville city council decides to impose a $44.25 per kitproduction tax on WMW. How much of this tax shouldWMW pass on to consumers in the form of a price increasein order to maximize their weekly profit under this newcondition?

Given Demand equation for deluxe marble kit p=600-3q-0.01q2 ... (1) Where p denotes price…

The demand equation for the deluxe marble kit produced by Whoville Marble Works (WMW) is p = 600 - 3q -0.01q² where p is the price WMW sets for the kit and q is the number of kits that they sell in a week. (a) Find the price that WMW should set to maximize their weekly revenue, the corresponding revenue maximizing output and their maximum weekly revenue. Round your answers to 2 decimal places. (b) Show how you know that the revenue you found in (a) is WMW's absolute maximum weekly revenue.

The demand equation for the deluxe marble kit produced by Whoville Marble Works (WMW) is p = 600 - 3q -0.01q² where p is the price WMW sets for the kit and q is the number of kits that they sell in a week. (a) Find the price that WMW should set to maximize their weekly revenue, the corresponding revenue maximizing output and their maximum weekly revenue. Round your answers to 2 decimal places. (b) Show how you know that the revenue you found in (a) is WMW's absolute maximum weekly revenue.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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