Question #53469

How to derive the price from TR=100,000Q-10Q^2

Expert's answer

TR = P*Q = (100 - 10*Q)*Q .

Then P = 100 - 10*Q .

To maximaze TR we have to find an optimal Q:

MR = (d TR)/(d Q) = 100 - 20Q = 0 .

Then we can find Q = 5 and P = 100 - 10*Q = 100 - 10*5 = 50

Then P = 100 - 10*Q .

To maximaze TR we have to find an optimal Q:

MR = (d TR)/(d Q) = 100 - 20Q = 0 .

Then we can find Q = 5 and P = 100 - 10*Q = 100 - 10*5 = 50

## Comments

Assignment Expert27.07.15, 21:44Dear Asif, find fixed answer attached.

Asif26.07.15, 20:11Did not understand the answer of the above equation. please elaborate it in easy way.

How to derive the price from TR=100,000Q-10Q^2?

Answer

The price P = MR and MR = TR', so P = MR = TR' = (100,000Q-10Q^2)' = -1 - 20Q

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