You are given the following information about the market for Birkin Bags:The formula for Demand is as follows: Qd: 400,000-10*P.It's Cost Function is 20,000,000 + 6000Questions:(1) What is the price (P) where REVENUE is maximized?(2) What is the price (P) that maximizes PROFITS?(3) What is the QUANTITY (Q) that maximizes profits at that price?(4) What are TOTAL PROFITS at that price?

Qd = 400,000-10P P = 40,000 - Qd/10 TC = 20,000,000 + 600Q

You are given the following information about the market for Birkin Bags: The formula for Demand is as follows: Qd: 400,000-10*P. It's Cost Function is 20,000,000 + 600Q Questions: (1) What is the price (P) where REVENUE is maximized? (2) What is the price (P) that maximizes PROFITS? (3) What is the QUANTITY (Q) that maximizes profits at that price? (4) What are TOTAL PROFITS at that price?

You are given the following information about the market for Birkin Bags: The formula for Demand is as follows: Qd: 400,000-10*P. It's Cost Function is 20,000,000 + 600Q Questions: (1) What is the price (P) where REVENUE is maximized? (2) What is the price (P) that maximizes PROFITS? (3) What is the QUANTITY (Q) that maximizes profits at that price? (4) What are TOTAL PROFITS at that price?

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

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

Chapter10: Price-searcher Markets With Low Entry Barriers

Section: Chapter Questions

Problem 16CQ

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