Assume that the demand function for tuna in a small coastal town is given by 140 p = g0.5 (200 s q5 800), where p is the price (in dollars) per pound of tuna, and q is the number of pounds of tuna that can be sold at the price p in one month. (a) Calculate the price (In $ per Ib) that the town's fishery should charge for tuna in order to produce a demand of 400 pounds of tuna per month. per Ib (b) Calculate the monthly revenue R (in dollars) as a function of the number of pounds of tuna g. R(q) = (c) Calculate the revenue and marginal revenue (derivative of the revenue with respect to g) at a demand level of 400 pounds per month. revenue $ marginal revenue $ per Ib of tuna Interpret the results. At a demand level of 400 pounds per month, the revenue is $ and increasing at a rate of $ per additional pound of tuna.

Assume that the demand function for tuna in a small coastal town is given by 140 p = g0.5 (200 s q5 800), where p is the price (in dollars) per pound of tuna, and q is the number of pounds of tuna that can be sold at the price p in one month. (a) Calculate the price (In $ per Ib) that the town's fishery should charge for tuna in order to produce a demand of 400 pounds of tuna per month. per Ib (b) Calculate the monthly revenue R (in dollars) as a function of the number of pounds of tuna g. R(q) = (c) Calculate the revenue and marginal revenue (derivative of the revenue with respect to g) at a demand level of 400 pounds per month. revenue $ marginal revenue $ per Ib of tuna Interpret the results. At a demand level of 400 pounds per month, the revenue is $ and increasing at a rate of $ per additional pound of tuna.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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