Thranduil company's market research department is working on the pricing of a product. The field research shows that average demand is expected to be 8000 units at price 50 TL. From this point, each 1 TL change in price will negatively affect demand with a magnitude of 100 units. Fixed and variable costs are confronted for producing the product. According to the information obtained from the financial department, 200,000 TL is the estimate of fixed costsand 20 TL is the estimate of variable costs per unit produced. Assume that all units produced are sold. Which revenue equation (R(p)) is given correctly? O R(p) = (8000 + 5000)p – 100p? O R(p) (8000 - 100p) * p |3D

Thranduil company's market research department is working on the pricing of a product. The field research shows that average demand is expected to be 8000 units at price 50 TL. From this point, each 1 TL change in price will negatively affect demand with a magnitude of 100 units. Fixed and variable costs are confronted for producing the product. According to the information obtained from the financial department, 200,000 TL is the estimate of fixed costsand 20 TL is the estimate of variable costs per unit produced. Assume that all units produced are sold. Which revenue equation (R(p)) is given correctly? O R(p) = (8000 + 5000)p – 100p? O R(p) (8000 - 100p) * p |3D

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

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 9E

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