65 615
Assignments Done
99,2%
Successfully Done
In October 2018

Answer to Question #56994 in Macroeconomics for Zafar

Question #56994
Demand function is Q=1100-40P. Determine the quantity that results in maximum revenue
Expert's answer
Q=1100-40P, 40P = 1100 - Q, P = 27.5 - Q/40 - inverse demand function.
Total revenue is maximized, when marginal revenue MR = 0.
MR = TR' = (P*Q)' = (27.5Q - Q^2/40)' = 27.5 - Q/20
MR = 0, so 27.5 - Q/20 = 0,
Q/20 = 27.5
Q = 550 units.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions