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. Revenue Max. Desktop Publishing Software Inc. develops and markets software packages for business computers. Although sales have grown rapidly during recent years, mgt fear

. Revenue Max.

Desktop Publishing Software Inc. develops and markets software packages for business computers. Although sales have grown rapidly during recent years, mgt fear that the recent increase in the number of competitors in the industry may severely retard future growth opportunities. It believes the time has come to 'either get big or get out'.The following monthly demand and cost info. has been provided by the accounting and marketing depts.

P = 1,000 - QTC = 50,000 + 100Q

a)Calculate monthly Q, P and TR and Tp at the revenue max. O/P

b)Calculate monthly Q, P and TR and Tp at the Tp max. O/P

c)Comment on the different values of the P, Q, TR and T in a) and b)

When would SR revenue max. lead to LR p max.?

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