Question #299790

1. A laptop manufacturer produces ā€˜š‘„ā€™ sets per week at total cost of


š‘…š‘ . (2š‘„/25+ 3š‘„ + 100). He is a monopolist and the demand for his product


is: š‘„ = 75 āˆ’ 3š‘, where š‘ is the price in rupees per set. Shoe that the


maximum revenue is obtained when about 30 sets are produced per week.


What is the monopoly price?

1
Expert's answer
2022-02-20T16:02:06-0500

The maximum revenue TR is obtained when TR′(x)=MR=(pƗx)′=25āˆ’2x/3=0.TR'(x) = MR = (pƗx)' = 25 - 2x/3 = 0.

The monopoly price and quantity are:

MR = MC,

25 - 2x/3 = 2x/25 + 3,

56/75 x = 22,

x = 29.46 units,

p = 25 - 29.46/3 = 15.18.


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