# Demand, Revenue, Cost and Profit

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?

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

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