Explore BrainMass
Share

Explore BrainMass

    Demand, Revenue, Cost and Profit

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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?

    © BrainMass Inc. brainmass.com October 9, 2019, 9:25 pm ad1c9bdddf
    https://brainmass.com/economics/cost-benefit-analysis/demand-revenue-cost-profit-184042

    Solution Preview

    (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 - ...

    Solution Summary

    All the questions are solved neatly and step-by-step

    $2.19