Question

Optimal price

The demand function for Product X is Q = 100 – 2P. The company decided to set the price per product at $15.  Is $15 the optimal price to charge to maximize revenues? What is the optimal price?


2 0
Add a comment Improve this question Transcribed image text
Request Professional Answer

Request Answer!

10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
Optimal price
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
  • Consider a monopolist faces a demand described by Q 100-2P and its cost function is C(Q)...

    Consider a monopolist faces a demand described by Q 100-2P and its cost function is C(Q) 20Q 10. What is the decision by the firm to maximize its profit? What is the price the firm will charge? How much profit does the firm make?

  • If Q = 400 – 2P, at what price is revenue maximized at? For the demand...

    If Q = 400 – 2P, at what price is revenue maximized at? For the demand equation P = 36 - 2Q, what Price will maximize total revenue? If TC=40+6QTC=40+6Q and EP=−3EP​=−3 what is the optimal price to be charged? If TC=75+15QTC=75+15Q and EP=−2EP​=−2 is P=$30 the optimal price?

  • 3. A monopolist is able to practice third-degree price discrimination between two markets. The demand function...

    3. A monopolist is able to practice third-degree price discrimination between two markets. The demand function in the first market is q = 500 - 2p and the demand function in the second market is q = 1,500 - 6p. To maximize his profits assuming constant marginal cost, he should a. charge a higher price in the second market than in the first. b. charge a higher price in the first market than in the second. c. charge the same...

  • Exercise 1 ABC, Ltd. specializes in the production of a certain product X. The demand for...

    Exercise 1 ABC, Ltd. specializes in the production of a certain product X. The demand for its new brand of product X is given by: Q = 140 - 4P/ 1. ABC, Ltd. is currently charging $10 per unit of product. At this price, what is the price elasticity of demand for product X? 2. At a price of $10, what is ABC, Ltd's marginal revenue? 3. What price should ABC, Ltd. charge if it wishes to maximize its total...

  • Suppose there is a monopoly in a market with the cost function: TC = 2+Q2. The...

    Suppose there is a monopoly in a market with the cost function: TC = 2+Q2. The demand function in this market is Q = 12 - 2P (1) What quantity should the monopoly produce to maximize its profit? (2) What price the monopoly should charge to maximize its profit? (3) What is the maximum amount of profit that the monopoly can get in this market?

  • A company manufactures and sells x cellphones per week. The weekly price-demand and cost equation...

    #4 & 5, work shown. A company manufactures and sells x cellphones per week. The weekly price-demand and cost equations are given below. 4) p 400-0.lx and C(x)-25,000+135x Find the weekly revenue function. What price should the company charge for the phones, and how many phones should be produced to maximize the weekly revenue? What is the weekly revenue? a) b) c) Find the weekly profit function. What price should the company charge for the phones, and how many phones...

  • Score: 0 of 1 pt 1 of 5 (0 co 3.4.5 The price p and the quantity x sold of a certain product obey...

    plz help with part e thank you Score: 0 of 1 pt 1 of 5 (0 co 3.4.5 The price p and the quantity x sold of a certain product obey the demand equation below. x4p+ 80, 0sps 20 (a) Express the revenue R as a function of x. (b) What is the revenue if 76 units are sold? (c) What quantity x maximizes revenue? What is the maximum revenue? (d) What price should the company charge to maximize revenue?...

  • 42. Demand Equation The price p and the quantity x sold of a certain product obey...

    42. Demand Equation The price p and the quantity x sold of a certain product obey the demand equation x20p +500, 0sps 25 (a) Express the revenue R as a function of x. (b) What is the revenue if 20 units are sold? (c) What quantity x maximizes revenue? What is the maxi- mum revenue? (d) What price should the company charge to maximize rev- enue?

  • cost of cleanup is constant at $120 per unit. What is the optimal level of pollution...

    cost of cleanup is constant at $120 per unit. What is the optimal level of pollution cleanup in each of the two regions? 12. The private marginal benefit associated with a product's consumption is PMB = 350 – 4Q and the private marginal cost associated with its production is PMC = 6Q. Furthermore, the marginal external damage associated with this good's production is MD = 4Q. To correct the externality, the government decides to impose a tax of T per...

  • Suppose a corn producer tries to maximize the total revenue P × Q, where P is...

    Suppose a corn producer tries to maximize the total revenue P × Q, where P is the price of corns ($/bushel) which the producer takes as given, and Q is the total quantity (bushels). The producer is facing the following market demand: Q = 100 − 2P. What is the optimal level of corns that the producer produces? What is the corresponding total revenue? (Hint: setup as a constrained maximization problem and take the first order condition.)

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT