N1

Based on information you have you believe the demand curve for is as follows: \[ Q=500-P \] a. What is the revenue maximizing price and quantity (use calculus/algebra and show your work) b. Graph the demand curve above and the total revenue curve (the two graphs combined), label the intercepts on both graphs, the maximum total revenue given thepandqfrom part a c. You work at a firm that has a demand curve as listed above. Your boss tells you that your firm is currently charging a price of$200and that by increasing prices the firm can increase revenue. Is this true? Explain why or why not.