Question
Problem 08-04 (algo) You are the manager of a monopoly, and your analysts have estimated your demand and cost functions as P = 500 3
Problem 08-04 (algo)
You are the manager of a monopoly, and your analysts have estimated your demand and cost functions asP= 500 3QandC(Q) = 2,500+ 2Q2, respectively.
a. What price-quantity combination maximizes your firm's profits?
Instructions:Round your response to the nearest penny (two decimal places).
Price: $
Quantity:units
b. Calculate the maximum profits.
Instructions:Round your response to the nearest penny (two decimal places).
$
c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price-quantity combination?
multiple choice 1
- Elastic
- Correct
- Unit elastic
- Inelastic
d. What price-quantity combination maximizes revenue?
Instructions:Round your response to the nearest penny (two decimal places).
Price: $
Quantity:units
e. Calculate the maximum revenues.
Instructions:Round your response to the nearest penny (two decimal places).
$
f. Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price-quantity combination?
multiple choice 2
- Unit elastic
- Correct
- Elastic
- Inelastic
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E-Commerce 2013 Business Technology Society
Authors: Ken Laudon, Kenneth C Laudon
9th Edition
0132730359, 978-0132730358
