Asked by Anonymous
The demand function for a good is p=40−0.02q. Round your numeric answers to one decimal place.
a) Write the revenue as a function of production, q.
R(q) =
b) What production level maximizes revenue?
q =
c) What price corresponds to this production level?
price = $
d) What is the total revenue at this production level?
revenue = $
a) Write the revenue as a function of production, q.
R(q) =
b) What production level maximizes revenue?
q =
c) What price corresponds to this production level?
price = $
d) What is the total revenue at this production level?
revenue = $
Answers
Answered by
oobleck
assuming q is the quantity, p is the price,
(a) Revenue r(q) = price * demand = q*p(q)
I guess "production level" is supposed to be the quantity demanded ...
That would make
(b) find q where dr/dq = 0
(c,d) evaluate p(q),r(q) there
(a) Revenue r(q) = price * demand = q*p(q)
I guess "production level" is supposed to be the quantity demanded ...
That would make
(b) find q where dr/dq = 0
(c,d) evaluate p(q),r(q) there
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.