Assume that a firm accepts the following price_demand relationship as being a realistic representation of its market: d=800-10p where p must be between $20 and$70 a. How many units can the firm sell at the $20  per-unit price? At the $70 per-unit price? b.  By how many units does a $1 increase decrease demand? c. Which pricing alternative the business is considering maximizes revenue? Group of answer choices $40 $30 $50

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter24: Price-searcher Markets With High Entry Barriers
Section: Chapter Questions
Problem 13CQ
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Assume that a firm accepts the following price_demand relationship as being a realistic representation of its market:

d=800-10p

where p must be between $20 and$70

a. How many units can the firm sell at the $20  per-unit price? At the $70 per-unit price?

b.  By how many units does a $1 increase decrease demand?

c.

Which pricing alternative the business is considering maximizes revenue?

Group of answer choices
$40
$30
$50
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