**The demand function for product is p=-8q+800 and the total cost per unit for producing q...

**The demand function for product is p=-8q+800 and the total cost per unit for producing q units is c=67q+80+(1000/q)

-Develop the total revenue, total cost (if not given), and profit functions. Explain these functions in few sentences.

-Compute the point elasticity of demand.

-Find the intervals where the demand is inelastic, elastic, and the price for which the demand is unit elastic.

-Find the quantity that maximizes the total revenue and the corresponding price. Interpret your result.

-Find the quantity that minimizes the average cost function and the corresponding price. Interpret your results.

-What are the quantity and the price that maximize the profit? What is the maximum profit? Interpret your result.

-Discuss the results of 6, 7 and 8.

The supply function is given by, p=8+q, find the price and the quantity at the equilibrium.

-Calculate the consumer and producer surplus

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

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