Purchase Solution

# Profit Maximization

Not what you're looking for?

The Demand Function for a product can be as Q=400-2P. We would have a fixed cost for this product as 200 and our variable costs are 0.5 per unit. Please let me know the equation for the profit. When is profit maximized? What is the maximum profit?

##### Solution Summary

Profit maximization given demand function and costs of production.

##### Solution Preview

First you need to find the inverse demand function. You are given the demand function Q = 400-2P. We can convert this like this:
2P = 400 - Q
P = 200 -Q/2
Now you have the price as a function of the ...

##### Basics of Economics

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

##### Elementary Microeconomics

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

##### Economics, Basic Concepts, Demand-Supply-Equilibrium

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

##### Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

##### Economic Issues and Concepts

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