question archive Estimating Demand and Total Revenue 1
Estimating Demand and Total Revenue 1
Subject:EconomicsPrice: Bought3
Estimating Demand and Total Revenue
1.(a) Use the following function: QW= 400-2p, to estimate the maximum total revenue.
(b) Plot the average, marginal, and total revenue curves
(c) What is the maximum total revenue in monetary terms?
(d) Suppose marginal cost is $5, what will be the profit-maximizing price? Remember to use the MC=MR rule and then solve for price
