The demand function for your product is:

where P is price

Q(P) =5232-24P

Calculate the point price elasticity of demand

@ Home - tamiu.edu Hi Take Test: Quiz 3 - ECO 5310 780 FL20 - Manag 64700 QUESTION 4 You run a firm that produces barrels of West Texas light sweet crude oil. Demand for your product can be described with the following equation Q(P) = 30,162 - 457P Your firm has fixed costs of $78,000. In addition, it costs you $34 per barrel in variable costs. Your cost function is, therefore, C(Q) = $ 78,000 + $34Q Based on these functions, calculate the profit maximizing quantity for your good. Note: See Lectures 3.12-3.14 if you get stuck 7312 QUESTION 5 Using the demand and cost functions in the previous question What is the profit maximizing price, P*, that you should charge? 50 QUESTION 6 Based on the demand and cost functions in the previous 2 questions, Calculate profits at the profit maximizing price and quantity. 41492