Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman

Exercise 27

Suppose your firm faces a demand curve of P = 90 -.30 Q. Find the revenue maximizing output and price. Calculate the total revenue. Is this outcome on the elastic, inelastic, or unitary elastic part of the demand curve Is this price the optimal price for your firm to charge Display this choice graphically (showing the demand and marginal revenue curves).