Primo Inc. has the following weekly demand and cost relationships: q = 600 - 0.5P...
Primo Inc. has the following weekly demand and cost relationships:
q = 600 - 0.5P
TC = q3 - 66.5q2 + 1560q + 2000
1. Determine the total revenue maximizing levels of output (q) and price (P). What is the elasticity of demand (in absolute value) at this solution?
2. Determine the profit maximizing levels of output (q) and price (P). Make sure and evaluate second order conditions. What is the elasticity of demand (in absolute value) at this solution?
3. What is maximum weekly profit?
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Primo Inc. has the following weekly demand and cost
relationships:
q = 600 - 0.5P...
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