Turn on thread page Beta
    • Thread Starter
    Offline

    0
    ReputationRep:
    Hi Folks,
    Some help needed to resolve following task:


    Co XYZ has established that the relationship between the quantity demanded for one of its products and the price it charges is given by the following function:

    q = 750 - 5p

    Where q is the quantity demanded per week and p is the price charged.

    (a) What price should be charged if the business wishes to maximize total revenue?



    (b) What quantity will the firm sell per week when it is maximizing total revenue?

    (c) What will be the value of total revenue when it is being maximized?

    (d) What quantity will the firm sell if it charges a price of 100?

    (e) What is the price elasticity of demand when price is 100?

    Any help appreciated
    Thanks.
 
 
 
Reply
Submit reply
Turn on thread page Beta
TSR Support Team

We have a brilliant team of more than 60 Support Team members looking after discussions on The Student Room, helping to make it a fun, safe and useful place to hang out.

Updated: January 16, 2017
Poll
Do you think parents should charge rent?

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Write a reply...
Reply
Hide
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.