A company that supplies water to a city faces a market demand curve of P = 120-2q. At what quantity does the company maximise total revenue?
Question
Solution 1
The total revenue (TR) of a company is calculated by multiplying the price (P) it sells its product at by the quantity (q) of the product it sells. In this case, the price is given by the equation P = 120 - 2q.
So, the total revenue (TR) is given by the equation TR = P * q = (120 - 2q) * q = 120q - Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv
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