Q.5 Given the demand functions, (i) Q = 150 − 0.5P,      (ii) P = 80 − 2Q,         (iii) P = 45 (a) Write down the equations for TR. (b) Calculate the number of units which must be sold to maximize TR. Calculate the maximum TR. (c) State the values of Q at which MR and AR are zero.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter3: Demand Analysis
Section: Chapter Questions
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Q.5 Given the demand functions,

(i) Q = 150 − 0.5P,      (ii) P = 80 − 2Q,         (iii) P = 45

(a) Write down the equations for TR.

(b) Calculate the number of units which must be sold to maximize TR. Calculate the maximum TR.

(c) State the values of Q at which MR and AR are zero.

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