A firm estimates that it faces a demand curve with approximately the following relationship between price (P)

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A firm estimates that it faces a demand curve with approximately the following relationship between price (P) in £ and quantity sold (Q):

P = 100 – 0.01Q

Fixed costs are £40,000 and variable costs are £40 per unit.

Find formulae for Total Revenue (TR) and Total Cost (TC)
Find the formula for Profit (?)
Find the breakeven quantities and hence the profit-maximizing quantity

Related Book For answer-question

Management Science The Art of Modeling with Spreadsheets

ISBN: 978-1118582695

4th edition

Authors: Stephen G. Powell, Kenneth R. Baker

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Posted Date: Mar 22, 2023 06:51 AM

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A firm estimates that it faces a demand curve with approximately the following relationship between price (P)

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Management Science The Art of Modeling with Spreadsheets

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