Suppose that the sold rises as price is reduced. If 2 units output are sold at a price of P80, and the quantity sold rises to 4 units per month when the prices is reduced to P50.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
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Chapter3: Demand Analysis
Section: Chapter Questions
Problem 6E
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Seatwork 1.3 (Economic Optimization)
. Instructions
Instructions
Submit here the economic optimization exercise.
Suppose that the sold rises as price is reduced. If 2 units
output are sold at a price of P80, and the quantity sold
rises to 4 units per month when the prices is reduced to
P50.
Compute the linear curve P= a+bQ . Tabulate the revenue
and price relations and compute for total revenue and
marginal revenue from Q = 0 to Q=7
Transcribed Image Text:Seatwork 1.3 (Economic Optimization) . Instructions Instructions Submit here the economic optimization exercise. Suppose that the sold rises as price is reduced. If 2 units output are sold at a price of P80, and the quantity sold rises to 4 units per month when the prices is reduced to P50. Compute the linear curve P= a+bQ . Tabulate the revenue and price relations and compute for total revenue and marginal revenue from Q = 0 to Q=7
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