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I need the calculations for this exercice The demand and cost function for a company are estimated to be as follows: P =100 - 8Q
I need the calculations for this exercice
- The demand and cost function for a company are estimated to be as follows:
P =100 - 8Q
TC=50+80Q-10Q2 +0.6Q3
- What price should the company charge if it wants to maximize its profit in the short run?
- What price should it charge if it wants to maximize its revenue in the short run?
- Suppose the company lacks confidence in the accuracy of cost estimates expressed in a cubic equation and simply wants to use a linear approximation. Suggest a linear representation of this cubic equation. What difference would it make on the recommended profit-maximizing and revenue-maximizing prices?
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Intermediate Microeconomics and Its Application
Authors: walter nicholson, christopher snyder
11th edition
9781111784300, 324599102, 1111784302, 978-0324599107
