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    incentive for profit maximizing behavior

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    Quality Uniform Total Marginal Variable
    Sold Price Revenue Revenue Cost
    0 $50.00 $0 $0 $28
    1 $48.00 $48 $48 $28
    2 $46.00 $92 $44 $28
    3 $45.00 $135 $43 $28
    4 $44.00 $176 $41 $28
    5 $42.00 $210 $34 $28
    6 $40.00 $240 $30 $28
    7 $38.31 $268 $28 $28
    8 $36.50 $292 $24 $28
    9 $34.50 $311 $19 $28
    10 $32.70 $327 $16 $28
    11 $30.91 $340 $13 $28
    12 $29.17 $350 $10 $28
    13 $27.46 $357 $7 $28
    14 $25.79 $361 $4 $28
    15 $24.07 $361 $0 $28
    16 $22.50 $360 ($1) $28
    17 $20.94 $356 ($4) $28
    18 $19.39 $349 ($7) $28

    1. What price maximizes sales of revenue?

    2. What price maximizes operating profit? And Why?

    3. Who would pursue the first objective? (price max sale revenue)

    4. How could Ralph Lauren's manager provides an incentive for profit maximizing behavior?

    © BrainMass Inc. brainmass.com April 3, 2020, 7:59 pm ad1c9bdddf
    https://brainmass.com/economics/production/incentive-for-profit-maximizing-behavior-292148

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    Quality Sold Uniform Price Total Revenue Marginal Revenue Variable Cost Total Cost Operating Profit
    0 $50.00 $0 $0 $28 $0 $0
    1 $48.00 $48 $48 $28 $28 $20
    2 $46.00 $92 $44 $28 $56 $36
    3 $45.00 $135 $43 $28 $84 $51
    4 $44.00 $176 $41 $28 $112 $64
    5 $42.00 $210 $34 $28 $140 $70
    6 $40.00 $240 $30 $28 $168 $72
    7 $38.31 $268 $28 $28 $196 $72
    8 $36.50 $292 $24 $28 $224 $68
    9 $34.50 $311 $19 $28 $252 $59
    10 $32.70 $327 $16 $28 $280 $47
    11 $30.91 $340 $13 $28 $308 $32
    12 $29.17 $350 $10 $28 $336 ...

    Solution Summary

    List some incentives for profit maximizing behavior in this case.

    $2.19

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