A company has established that the relationship between the price for one of its products is approximately p = 88.5 - 0.08D0.75 In addition there is a fixed cost of $45,000 per year and the variable cost to manufacture the product is $45 per unit. What level of demand maximizes the total revenue? Ans. is Blank 1 What level of demand maximizes the total profit for this product? Ans. is Blank 2 Blank 1 Add your answer Blank 2 Add your answer

A company has established that the relationship between the price for one of its products is approximately p = 88.5 - 0.08D0.75 In addition there is a fixed cost of $45,000 per year and the variable cost to manufacture the product is $45 per unit. What level of demand maximizes the total revenue? Ans. is Blank 1 What level of demand maximizes the total profit for this product? Ans. is Blank 2 Blank 1 Add your answer Blank 2 Add your answer

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter11: Price-searcher Markets With High Entry Barriers

Section: Chapter Questions

Problem 14CQ

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