The manufacturer of high-quality flatbed scanners is trying to decide what price to set for its product. The cost of production and the demand for the product are assumed to be as follows:
TC = 10,000 + 100Q + 0.02Q^2
Qd =20,000 - 100 P
a) Algebraically determine the short-run profit maximizing price and quantity.
b) algebraically determine the maximum profit accruable to the firm.
c) Determine algebraically the maximum revenue accruable to the firm© BrainMass Inc. brainmass.com October 25, 2018, 3:10 am ad1c9bdddf
The maximum revenue accruable to firm is presented.
Managerial Economics: Calculating Maximum Profit and Revenue
A monopolist's demand function is given by
P = 80-3Q
(with MR = 80-6Q).
Its total cost function is
TC = 20Q + 200
(with MC = 20).
(i) Using algebra determine the profit maximizing output, price and optimal profit for the firm.
(ii) Suppose that instead of maximizing profit, the firm wants to maximize total revenue. Using algebra determine the optimal output, price, profit and revenue for the firm.View Full Posting Details