The price demand equation for hamburgers at a fast food restaurant is x + 1000p = 2,500 where p is the price in which exactly x items will be sold. Currently, the price of an order of fries is $1. A....
The price demand equation for hamburgers at a fast food restaurant is
x + 1000p = 2,500
where p is the price in which exactly x items will be sold. Currently, the price of an order of fries is $1.
A. How many fries are they currently selling?
B. If the price is decreased will the revenue increase or decrease?
C. If the price is increased, will the revenue increase or decrease?
D. What price will maximize revenue?
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The price demand equation for hamburgers at a fast food restaurant is x + 1000p = 2,500 where p is the price in which exactly x items will be sold. Currently, the price of an order of fries is $1. A....
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increased demand. To finance the oven you go to the bank seeking a
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42. Demand Equation The price p and the quantity x sold of a certain product obey the demand equation x20p +500, 0sps 25 (a) Express the revenue R as a function of x. (b) What is the revenue if 20 units are sold? (c) What quantity x maximizes revenue? What is the maxi- mum revenue? (d) What price should the company charge to maximize rev- enue?
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p ot an iten Hu between the price shows the relationship a demand curve on 3.5) In economics, the number x (in thousands) of such items that can be sold at that price. Suppose that the demand a commodity is given by the formula x2000-p3,valid for p S 12. Note that the radical in this equation is a cube root, not a square root.) (a) Use implicit differentiation to find the rate of change of p with respect to x...
3. (20 points]Let x = 5000 - 20p where pe price and 1= demand. (a) Express the revenue function R(p) in terms of p. (b) Compute for the marginal revenue with the price set at p = 100. (c) With the goal of maximizing the revenue function, determine if we should increase the price when the current price is set at $100/unit. Give your reason. (d) Given the cost function C(x) = 4000+80r and with the price set at $100/unit....
3. A monopolist chooses output (x) to maximize profit (T) where r(x) = p(x)x-c(x) In this equation, p(x) denotes the price of x and c(x) is the cost of producing x. Since demand curves are downward sloping, we assume that p,(x) <0. In addition, we will assume that marginal cost is positive and non-decreasing; that is, c'(x) > 0 and c"(x) 2 0. Derive a condition on the demand curve such that marginal revenue is downward sloping. Derive the first...
As the owner of Barney’s
Broilers—a fast-food chain—you see an increase in the demand for
broiled chicken as consumers become more health conscious and
reduce their consumption of beef and fried foods. As a result, you
believe it is necessary to purchase another oven to meet the
increased demand. To finance the oven you go to the bank seeking a
loan. The loan officer tells you that your revenues of $750,000 are
insufficient to support additional debt. To qualify for...
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