Just-the-Fax, Max, Inc. has determined that the demand for its FAX machines is Q = 3,000 1.5P.

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Just-the-Fax, Max, Inc. has determined that the demand for its FAX machines is Q = 3,000 −1.5P.

a. Calculate the point price elasticity of demand when P = $600.

b. At P = $600 what is Max’s marginal revenue?

c. Determine the total revenue maximizing price and quantity for the firm.

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Managerial Economics: Tools For Analyzing Business Strategy

ISBN: 307174

1st Edition

Authors: Thomas J Webster

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Question Posted: Oct 08, 2024 08:04 AM

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Just-the-Fax, Max, Inc. has determined that the demand for its FAX machines is Q = 3,000 1.5P.

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Managerial Economics: Tools For Analyzing Business Strategy

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