Suppose that the sold rises as price is reduced. If 2 units output are sold at a price of P80, and the quantity sold rises to 4 units per month when the prices is reduced to P50.

Microeconomics: Private and Public Choice (MindTap Course List)
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Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
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Seatwork 1.3 (Economic Optimization)
. Instructions
Instructions
Submit here the economic optimization exercise.
Suppose that the sold rises as price is reduced. If 2 units
output are sold at a price of P80, and the quantity sold
rises to 4 units per month when the prices is reduced to
P50.
Compute the linear curve P= a+bQ . Tabulate the revenue
and price relations and compute for total revenue and
marginal revenue from Q = 0 to Q=7
Transcribed Image Text:Seatwork 1.3 (Economic Optimization) . Instructions Instructions Submit here the economic optimization exercise. Suppose that the sold rises as price is reduced. If 2 units output are sold at a price of P80, and the quantity sold rises to 4 units per month when the prices is reduced to P50. Compute the linear curve P= a+bQ . Tabulate the revenue and price relations and compute for total revenue and marginal revenue from Q = 0 to Q=7
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