Demand function Qd = 6 – 0.5P. At what volume will the monopolist’s revenue be maximized?
| March 1, 2021 | education
To find out at what volume of goods the revenue will be the highest, you need to substitute these values instead of Qd and find the price per unit of production.
1) Qd = 1 = 6 – 0.5P.
0.5P = 5.
P = 10 – with a volume of 1 unit. revenue = 10 (10 x 1).
2) Qd = 2 = 6 – 0.5P.
0.5P = 4.
P = 8 – with a volume of 2 units. revenue = 16 (8 x 2).
3) Qd = 3 = 6 – 0.5P.
0.5P = 3.
P = 6 – with a volume of 3 units. revenue = 18 (6 x 3).
4) Qd = 4 = 6 – 0.5P.
0.5P = 2.
P = 4 – with a volume of 4 units. revenue = 16 (4 x 4).
5) Qd = 5 = 6 – 0.5P.
0.5P = 1.
P = 2 – with a volume of 5 units. revenue = 10 (5 x 2).
Answer: the largest revenue with a volume of 3 units.
One of the components of a person's success in our time is receiving modern high-quality education, mastering the knowledge, skills and abilities necessary for life in society. A person today needs to study almost all his life, mastering everything new and new, acquiring the necessary professional qualities.
