Asked by lea
14. The demand function for a monopolistβs product is π=β500βπ. If the monopolist produces at least 100 units, but no more than 200 units, how many units should be produced to maximize total revenue,π
=ππ?
Answers
Answered by
oobleck
R = pq = qβ(500-q)
dR/dq = (1000-3q)/(2β(500-q))
Looks like dR/dq=0 at q = 1000/3 = 333
But, we are only considering the interval [100,200]. So the maximum R occurs at q=200
dR/dq = (1000-3q)/(2β(500-q))
Looks like dR/dq=0 at q = 1000/3 = 333
But, we are only considering the interval [100,200]. So the maximum R occurs at q=200
Answered by
Viratkumar jariwala
Yer good
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