Q = 25 - 0.05P
TC = 700 + 200Q
Develop demand and cost schedules.
What is the quantity to sell to maximize profits?
What price is needed to maximize revenue?
What price is needed to maximize revenue but keep profits at a minimum of $300?
(a) First we get the total Revenue function.
From the demand equation, we get P = (25 - Q)/0.05 = 20(25 - Q) = 500 - 20Q
TR = quantity sold * price = Q * P = Q * (500 - 20Q) = 500Q - ...
All the questions are solved neatly and step-by-step