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
Learn more about our help with Assignments: Finance
Comments
Assignment Expert
27.07.15, 20:44
Dear Asif, find fixed answer attached.
Asif
26.07.15, 19:11
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
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