Posted by **alejandro guzman** on Tuesday, March 12, 2013 at 9:37pm.

Consider the Linear demand function Q = 20 - 0.5P

c- Using calculus, find the level of output, Qrmax, where total revenue reaches its maximum value. What price Prmx maximizes total revenue? What is the value of TR at this maximum point.

d- Write the equation for marginal revenue. Using MR, verify that Qrmax derived in part c maximizes total revenue.

e- Calculate the point elasticity of demand at Prmax. Does E have the expected value? Explain briefly.

## Answer This Question

## Related Questions

- managerial economics - Given a firm’s demand function, P = 24 - 0.5Q and the ...
- Calculus - using the demand function p = 41 − 0.04 q instead of the one ...
- Calculus - using the demand function p = 41 − 0.04 q instead of the one ...
- managerial economics - firms demand function,p=24-0.54q and the average cost ...
- Economics - A firm is currently producing in the elastic portion of its demand ...
- manaegerial economics - iven a firm’s demand function, P = 24 - 0.5Q and the ...
- ECONOMICS - Q2) Given a firm’s demand function, P = 24 - 0.5Q and the average ...
- economics - 2. Given a firm’s demand function, P = 24 - 0.5Q and the average ...
- economics - 2. Given a firm’s demand function, P = 24 - 0.5Q and the average ...
- economics - 1. Given a firm’s demand function, P = 24 - 0.5Q and the average ...

More Related Questions