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A company is the sole producer of holographic TVs. The daily demand for these TVs is Q=10,200 - 100P, where Q is the quantity demanded
A company is the sole producer of holographic TVs. The daily demand for these TVs is Q=10,200 - 100P, where Q is the quantity demanded and P is the price. The cost of producing the TVs is (note that this implies that marginal cost is equal to Q, MC = Q).
- What is the company's total revenue schedule?
[3 marks]
- What is the company's marginal revenue schedule?
[2 marks]
- What is the profit maximising number of TVs that the company must produce each day? What price should it charge per TV? What is the daily profit?
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