Quantitative analysis DILEMMA :( Watch

amethystfrenzy
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Report Thread starter 7 years ago
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I've been given only the demand and selling price

Demand (000's)
4
6
9
11
13
14
16
18.5

Selling price
38
36
32
23.5
24.5
20
14.5
12.5

The unit variable cost: 15
Fixed Cost: 20,000

I've found the consumer demand function through correlation and regression, that is p= 46.72 - 1.89q. I've also plotted a scattergraph.

The second question says to find the selling price and output for the company to maximise short-run profits. How would I go about finding the MR with the equation? and plotting the MC and MR. An explanation would be greatly appreciated. Thank you.
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little_wizard123
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#2
Report 7 years ago
#2
(Original post by amethystfrenzy)
I've been given only the demand and selling price

Demand (000's)
4
6
9
11
13
14
16
18.5

Selling price
38
36
32
23.5
24.5
20
14.5
12.5

The unit variable cost: 15
Fixed Cost: 20,000

I've found the consumer demand function through correlation and regression, that is p= 46.72 - 1.89q. I've also plotted a scattergraph.

The second question says to find the selling price and output for the company to maximise short-run profits. How would I go about finding the MR with the equation? and plotting the MC and MR. An explanation would be greatly appreciated. Thank you.
MR is the derivative of TR with respect to quantity: d(pq)/d(q).
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