Question 2 A firm faces the demand curve: P = 1,803 - 18Q. What is the firm's revenue maximizing price? Enter as a value (round to two decimal places if necessary).
Added by Tracy R.
Close
Step 1
To do this, we need to find the quantity at which the demand curve intersects the x-axis (Q-axis). This is the quantity at which the firm can sell the most goods. Setting the demand curve equal to zero, we have: 1.803 - 18Q = 0 Solving for Q, we get: 18Q = Show more…
Show all steps
Your feedback will help us improve your experience
Sanchit Jain and 98 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
A firm faces the following average revenue (demand) curve: P = 120 - 0.02Q where Q is weekly production and P is price, measured in cents per unit. The firm's cost function is given by C = 60Q + 25,000. Assume that the firm maximizes profits. What is the level of production, price, and total profit per week? Hint: MC = 60.
Andrew D.
Assume that a monopolist faces a demand curve for its product given by: p=120−1q Further assume that the firm's cost function is: TC=580+11q What is the profit for the firm at the optimal quantity and price?
Vincenzo Z.
Assume that a monopolist faces a demand curve for its product given by: p=120−1q Further assume that the firm's cost function is: TC=580+11q How much output should the firm produce?
Joseph D.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Watch the video solution with this free unlock.
EMAIL
PASSWORD