Demand for earbuds is represented by: P = 402 – 2Q The costs are $8 per...
Demand for earbuds is represented by: P = 402 – 2Q The costs are
$8 per set of earbuds. In order to stock earbuds, other items which
average $2 in profit must be taken off the shelf.
How many earbuds should you order?
Homework Answers
MC= 8+2 =10
MR is twice the slope of the demand curve
MR = 402-4Q
Setting MC=MR for profit maximization
402-4Q=10
402-10 = 4Q
Q = 392/4 = 98
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Demand for earbuds is represented by: P = 402 – 2Q The costs are
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