Managerial Econ
posted by Erin .
given the demand function Q=9.5P how can you figure out the optimal price if the objective of the firm is to mazimize revenues?? PLEASE HELP
more a calclus question with an economics application. First, set the equation for total revenue TR. TR is simply price times quantity  P*Q. Multiply your equation by P.
P*Q = 9P.5P^2 = TR
Next, find the first derivitive wrt to P. TR' = 9P. Find the P such that TR'=0. Obviously P=9. This is the revenue (not profit) maximizing price.
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