1. The ëstimated demand curve för a firm's product is represented by the equation: Q = 66000 – 10P where Q is the quantity sold per year and P is the price per unit. (a) Based on the estimated demand curve, write the equations for (i) (ii) total revenue average revenue (iii) marginal revenue (b) What is the maximum total revenue per year that the firm can obtain from sales of its product? (Give the exact dollar amount and show how you determined it.) (c) Calculate the point price elasticity of demand for the firms' product when Q= 50000 . Is the demand elastic or inelastic at that quantity? How do you know? %3D

1. The ëstimated demand curve för a firm's product is represented by the equation: Q = 66000 – 10P where Q is the quantity sold per year and P is the price per unit. (a) Based on the estimated demand curve, write the equations for (i) (ii) total revenue average revenue (iii) marginal revenue (b) What is the maximum total revenue per year that the firm can obtain from sales of its product? (Give the exact dollar amount and show how you determined it.) (c) Calculate the point price elasticity of demand for the firms' product when Q= 50000 . Is the demand elastic or inelastic at that quantity? How do you know? %3D

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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