8. Suppose that at a price of $400 per surfboard the demand is 10 surfboards per...
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8. Suppose that at a price of $400 per surfboard the demand is 10 surfboards per day and at a price of $320 per surfboard the demand is 20 surfboards per day. a) [2] Find the price-demand equation, p(x), where x quantity demanded. b) [1] Write an equation for the revenue, R(x), of the price-demand equation. c) [1] Use the cost equation, C(x) in question 7a to find the profit equation, P(x). Simplify. d) [1] Find the level of production that will maximize profit. What is the maximum profit? e) [2] Find the revenue and the marginal revenue at a production level of 15. Give a brief interpretation of results. 8. Suppose that at a price of $400 per surfboard the demand is 10 surfboards per day and at a price of $320 per surfboard the demand is 20 surfboards per day. a) [2] Find the price-demand equation, p(x), where x quantity demanded. b) [1] Write an equation for the revenue, R(x), of the price-demand equation. c) [1] Use the cost equation, C(x) in question 7a to find the profit equation, P(x). Simplify. d) [1] Find the level of production that will maximize profit. What is the maximum profit? e) [2] Find the revenue and the marginal revenue at a production level of 15. Give a brief interpretation of results.
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a Using the two given points we can find the slope of the demand equation Slope change in y change i... View the full answer
Related Book For
Microeconomics
ISBN: 978-0321866349
14th canadian Edition
Authors: Christopher T.S. Ragan, Richard G Lipsey
Posted Date:
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