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
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 = $
1 answer