Purchase Solution

Demand, Revenue, Cost and Profit

Not what you're looking for?

Ask Custom Question

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?

Purchase this Solution
Solution Summary

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

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 - ...

Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

View More Free Quizzes
Related BrainMass Solutions

  • BASE CASE

    • Determine revenue, variable costs, and total cost at the profit maximizing price.

  • The change in the revenue

    72490 Revenue-profit; demand curve; cost curve; price-revenue 1. Is is possible to maximize sales revenue or market share and profit at the same time? Why? 2. Are all demain curves downward sloping ? Why?

  • monopolistis quantity, price and profit

    250207 monopolistis quantity, price and profit A monopolist has a constant marginal and average cost of $10 and faces a demand curve of QD = 1000-10P. Marginal revenue is given by MR = 100 -1/5Q.

  • Calculating profit-maximizing price and output

    ) Price elasticity of demand=(dQL/dPL)*(PL/QL)=-2500*(35/37500)= -2.33333 The solution describes the steps to calculate profit-maximizing price, output, total profit contribution levels and associated price elasticity of demand.

  • Finding a linear demand function and maximizing profit

    You are also given information on the cost of each item so that you can construct a cost function. From the demand function you can form a revenue function and finally the profit function is the revenue minus the cost.

  • Expected Demand, Revenue, Cost, Profit

    Demand Relative Frequency Revenue Cost 0 .35 0 0 1 .25 40 0 2 .20 80 0 3 .10 80 15 4 .05 80 30 a. What is the expected demand? b. What is the expected revenue? c. What is the expected cost? d. What is the expected profit?

  • Determining the optimal price and output combination

    Derive equations for revenue, marginal revenue, total cost, and marginal cost. b. Determine the monopolist's profit-maximizing output, price, and profit. 3. Industry demand for a good is given by: P = 60 - .5Q.

  • The market demand curve is QD= 160 - 4P.

    172729 The market demand curve is QD= 160 - 4P. The market demand curve is QD= 160 - 4P. A monopolist's total cost curve is TC = 6Q2 + 15Q + 50. a. Find the profit-maximizing level of output and price for a monopolist. b.

  • Compute the price elasticity of demand

    Finally, profit is total revenue minus total cost: Profit = 60Q - 5Q^2 - Q^2 - 16Q - 20 = 44Q - 6Q^2 - 20 (II) The output that maximizes total revenue can be found by equating the marginal revenue to zero, and isolating Q from that equation.

  • Finding Profit-Maximizing Level of Production

    Finding the profit-maximizing level of production given cost and demand functions.

View More Related Solutions