Question
I have a-c answered. Just need help with D-G. I submitted this questio yeasterday and forgot to include part d through part Thank you! 1.Jerry
I have a-c answered. Just need help with D-G.
I submitted this questio yeasterday and forgot to include part d through part
Thank you!
1.Jerry is a self-employed message therapist working from home. All of his costs are fixed, which means that to maximize his profit, all he needs to do is maximize revenue. Suppose that Jerry faces the following yearly demand function for an hour session: Q = 2,500 - 10P.
a.Graph Jerry's demand function
b.What is the profit-maximizing price Jerry should charge for his services? How many sessions will he do at this price? Show this point on the graph and shade the region that corresponds to Jerry's revenue.
c.What is the elasticity of demand at Jerry's optimal price and quantity?
d.For a generic revenue function, R(Q) = P(Q)*Q, the first derivative with respect to quantity (aka marginal revenue) is:
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