Explore BrainMass
Share

Explore BrainMass

    Optimal Output Calculation

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

    Supposing the demand for a gas station is given as PD = 2.06 - .00025QD. The marginal cost is $1.31 per gallon. At his current $1.69 price, he sells 1,500 gallons per week. Is this price-output combination optimal?

    © BrainMass Inc. brainmass.com October 10, 2019, 6:08 am ad1c9bdddf
    https://brainmass.com/economics/pricing-output-decisions/optimal-output-calculation-531035

    Solution Preview

    It should be - if PD is price demanded = 2.06 - .00025* Quantity ...

    Solution Summary

    This solution explains how the calculate the optimal price output combination.

    $2.19