Webrevenue = price × quantity The price is 90 + x, where x is the change in price, and the quantity is 7, 000, 000 − 100, 000 x (I'm going to assume that's what you meant when you wrote ( 7 − 100, 000 x) ). Now just take the derivative of that function. WebNov 28, 2024 · Since the second derivative is -ve it can be said that the revenue function has a maximum at q = 2250. The quantity that maximizes the revenue = 2250 items Price of each item = 45 - 0.01 × 2250 = 45 - 22.50 Price of each item is 22.5 = 101250 - 50625 = 50625 Total revenue is 50625.
How to Calculate Maximum Profit in a Monopoly - dummies
WebMar 26, 2016 · Determine marginal cost by taking the derivative of total cost with respect to quantity. Set marginal revenue equal to marginal cost and solve for q. Substituting 2,000 for q in the demand equation enables you to determine price. Thus, the profit-maximizing quantity is 2,000 units and the price is $40 per unit. WebWhich price maximizes revenue? Find une prote-maximizing price, quantity, and profit. At the profit-maximizing price and quantity, is the monopolist's markup equal to the inverse of the absolute value of the demand elasticity? Suppose there is room for 200 cars in the car park. Find the profit-maximizing price, quantity, and profit. new tariffs mean higher refrigerator prices
ECON 3125 Chapter 3 Flashcards Quizlet
WebThe production flow treatment of intermediate demand is a stage-based system of price indexes. These indexes can be used to study price transmission across stages of production and final demand. This system is constructed in a manner that maximizes forward flow of production between stages, while minimizing back-flow of production. Business statisticians know how to use sales data to determine mathematical functions for sales and demand. Using these functions and some basic calculus, it is possible to calculate the maximum revenue that the … See more WebFor example, a company sells shoes for $2, and 1,000 people buy a pair. Revenue is at $2,000. What price p maximizes revenue? What price should the company charge to … mid-state supply wautoma wi