Marginal Revenue and Profit Maximization
The Smith Company's demand curve for the company's product is P= 2,000 - 20Q, where P = price and Q = the number sold per month.
a. Derive the marginal revenue curve for the firm.
b. At what output is the demand for the firm's product price elastic?
c. If the firm wants to maximize its dollar sales volume, what price should it charge?© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/statistics/correlation-and-regression-analysis/marginal-revenue-and-profit-maximization-jii7