given the demand function Q=9.5P how can you figure out the optimal price if the objective of the firm is to mazimize revenues?? PLEASE HELP
more a calclus question with an economics application. First, set the equation for total revenue TR. TR is simply price times quantity  P*Q. Multiply your equation by P.
P*Q = 9P.5P^2 = TR
Next, find the first derivitive wrt to P. TR' = 9P. Find the P such that TR'=0. Obviously P=9. This is the revenue (not profit) maximizing price.
 👍
 👎
 👁
 ℹ️
 🚩
Answer this Question
Related Questions

algebra 2
Graph the system of constraints and find the value of x and y that maximize the objective function. Constraints {x >= 0 y >= 0 y

Algebra 2
1. By graphing the system of constraints, find the values of x and y that maximize the objective function. 2

Social studies
1. What event would most likely cause an increase in sales A. Decrease in price B. Increase in supply C. Decrease in product quality D. Increase in quality product Answer: A 2. What is stated by the law of supply A. An increase in price will cause a

Algebra 2
given the system of constraints, name all vertices of the feasible region. then find the maximum value of the given objective function. Constraints: x ≥ 0 y ≥ 0 y ≤ 1/3x + 3 5 ≥ y + x Objective function: C = 6x  4y

Social studies
1. Why do businesses seek an equilibrium price? A. It ensures that competitors cannot offer lower prices B. It attracts the largest possible number of consumers to the business •• C. It provides the highest possible prices that consumers will pay for

Algebra 2
What point in the feasible region maximizes the objective function ? (3 points) Constraints {x>0 {y>0 {x+3>y {y

computer science
Can you find the reason that the following pseudocode function does not return the value indicated in the comments? // The calcDiscountPrice function accepts an item’s price and // the discount percentage as arguments. It use those // values to calculate

calculus
Use the demand function X=325(1(6p/7p+4)) to find the rate of change in the demand x for the given price p=$5.00. Round your answer to two decimal places. A. 5.13 UNITS PER DOLLAR B. 0.85 UNITS PER DOLLAR C. 0.85 UNITS PER DOLLAR D. 1.35 UNITS PER DOLLAR

Math(Urgent)
Compute the maximum product for two positive numbers x and y with the property that the sum of the first plus five times the second is 5000. 1) Indicate the objective equation 2) Indicate the constraint equation So the objective = f(x)=xy and the

math
q = 350 − 5p (a) Enter the equation for revenue R as a function of price p. R = (b) What is the (instantaneous) rate of change of revenue with respect to price when the price is $6? (c) At what price is the derivative of revenue with respect to price

Math
The quantity demanded each month of russo Espresso Makers is 250 when the unit price is $140; the quantity demanded each month is 1000 when th e unit price is $110. the suppliers will market 750 expresso makers if the unit price is $60 or higher. At a unit

Econ
You are the manager of a firm that receives revenues of $40,000 per year from product X and $90,000 per year from product Y. The own price elasticity of demand for product X is 1.5, and the crossprice elasticity of demand between product Y and X is 1.8.

Economics
Determine whether each of the following would cause a shift in the aggregate demand curve, the aggregate supply curve, neither, or both. Which curve shifts, and in which direction? What happens to aggregate output and the price level in each case? a. The

Economics
Why do people routinely stuff themselves at allyoucaneat buffets? Explain in terms of both utility and demand theories. At any level, the marginal cost of take another bite at an allyoucaneat place is zero. In terms of utility, a person should

Calculus
A baseball team plays in a stadium that holds 53,000 spectators. With ticket prices at $10, the average attendance had been 49,000. When ticket prices were lowered to $8, the average attendance rose to 51,000. (a) Find the demand function (price p as a

Microeconomics
Answer the following questions based on the graph that represents J.R.'s demand for ribs per week of ribs at Judy's rib shack. a. At the equilibrium price, how many ribs would J.R. be willing to purchase? b. How much is J.R. willing to pay for 20 ribs? c.

Math
The demand equation for a product is: q=60/p + ln(65p^3) A) Determine the point of elasticity of demand when p=4, and classify the demand as elastic, inelastic, or of unit elasticity at this price level. B) If the price is lowered by 2% (from $4.00 to

algebra
What point in the feasible region maximizes the objective function? Constraints: x>=0 y>=0 x+3>=y y

Algebra
Given the system of constraints, name all vertices of the feasible region. Then find the maximum value of the given objective function. constraints x≥0 y≥0 y≤1/3x+3 5≥x+y Objective Function: C=6x−4y

college algebra
Demand Equation: The price p, in dollars, and the quantity x sold of a certain product obey the demand equation x = 5p + 100, 0 (less than or equal to) p (less than or equal to) 20 a.) Express the revenue R as a funtion of x. b.) What is the revenue if 15
Still need help?
You can ask a new question or browse existing questions.