Question
You are the only agricultural business consultant in your rural area. You have figured out that you face the demand schedule for your services can
You are the only agricultural business consultant in your rural area. You have figured out that you face the demand schedule for your services can be represented by the equation P = 800 - 3 Q, where P is the price in $/consultation and Q is the number of consultations per month.Your fixed cost is $12,000 per month, and your marginal cost is $200/consultation.a. (7 pts.) Suppose that you charge all of your customers the same price per consultation, because they know each other and you are wary that you will lose business if they find out that they are being charged different prices. Complete the missing data in the following table, and determine the number of consultations you should have to maximize profits, the price you should charge, and your profits.
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