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
It should be - if PD is price demanded = 2.06 - .00025* Quantity ...
This solution explains how the calculate the optimal price output combination.