D) Use the price function found in (a) to determine the price per unit that will need to be charged at the Q found in (c).  This will be the price you should ask per unit for each unit of Q that maximizes total profit. E) How much total profit will result from selling the quantity found in (c) at the price found in (d)?  Remember: profit is TR -  STC.  F) At what level of Q is revenue maximized?  Remember: let MR = 0 and solve for Q.  MR = 0 signals the objective of maximizing revenue.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
Section: Chapter Questions
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D) Use the price function found in (a) to determine the price per unit that will need to be charged at the Q found in (c).  This will be the price you should ask per unit for each unit of Q that maximizes total profit.

E) How much total profit will result from selling the quantity found in (c) at the price found in (d)?  Remember: profit is TR -  STC. 

F) At what level of Q is revenue maximized?  Remember: let MR = 0 and solve for Q.  MR = 0 signals the objective of maximizing revenue.

The demand for product Q is given by Q = 100 -.25P and the total cost of Q by:
1
STC = 3000 + 40Q - 5Q² +
Transcribed Image Text:The demand for product Q is given by Q = 100 -.25P and the total cost of Q by: 1 STC = 3000 + 40Q - 5Q² +
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