Revenue Maximization in a Pricing Model
A company has determined that the number of units sold, q, is given by \(q = 100 – 2p\), where \(p\) is the price in dollars. The unit production cost is constant at \$20. (a) SL setup: Write the net revenue function \(R(p)\) in terms of the price \(p\), by first expressing the total revenue […]
Part a
Assume the demand function is given by \(q = 100 – 2p\), where \(q\) is the number of units sold and \(p\) is the price per unit in dollars. The total revenue is \(p \times q\) and the total production cost is \$20 \times q\) (since the cost per unit is \$20). Write the net […]