An Office Supply Company Sells Q Permanent Markers Per Year At P Per Marker The Price Demand Equation For These Marker 1 (38.06 KiB) Viewed 8 times
An Office Supply Company Sells Q Permanent Markers Per Year At P Per Marker The Price Demand Equation For These Marker 2 (30.74 KiB) Viewed 8 times
An office supply company sells Q permanent markers per year at $P per marker. The price-demand equation for these markers is P=10- 0.001Q. A. What price should the company charge for the markers to maximize the revenue? B. What is the maximum revenue? Find the revenue function first: TR(Q)= Q² 1. Find the critical values(s) 2. Test the second-order condition 3. Calculate the maximum profit TRmax 1. TR'(Q)= Q C.v. : Q=
2. Second-derivative test. TR"(Q)= It is : O<0 O>0 Hence: Ominimum value exists Omaximum value exists A. What price should the company charge for the markers to maximize the revenue? P=$ B. What is the maximum revenue? TR max=$
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