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Answer to Question #53469 in Finance for Asif
Question #53469
How to derive the price from TR=100,000Q-10Q^2
Expert's answer
TR = P*Q = (100 - 10*Q)*Q .
Then P = 100 - 10*Q .
To maximaze TR we have to find an optimal Q:
MR = (d TR)/(d Q) = 100 - 20Q = 0 .
Then we can find Q = 5 and P = 100 - 10*Q = 100 - 10*5 = 50
Then P = 100 - 10*Q .
To maximaze TR we have to find an optimal Q:
MR = (d TR)/(d Q) = 100 - 20Q = 0 .
Then we can find Q = 5 and P = 100 - 10*Q = 100 - 10*5 = 50
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Comments
Dear Asif, find fixed answer attached.
Did not understand the answer of the above equation. please elaborate it in easy way. How to derive the price from TR=100,000Q-10Q^2? Answer The price P = MR and MR = TR', so P = MR = TR' = (100,000Q-10Q^2)' = -1 - 20Q
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