Question 5: Assume the following demand curve: Q = 50,400 – 1,200(P). Variable costs are estimated...

Question 5:

Assume the following demand curve: Q = 50,400 – 1,200(P). Variable costs are estimated to be $25.78. Calculate total contribution margin at the optimal price. Round your answer to the nearest dollar.

Question 6

Assume the following demand equation: Q = 797 - 19(P). Variable costs = $6. Calculate marginal revenue for the 251st unit. Round your final answer to the nearest dollar.

(When you are calculating the two prices, do not round to less than 2 decimal places. In other words, you are safe to round each price to the nearest penny.)

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Expert Solution

Answer is as follows:

jeff jeffy answered 1 year ago

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