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il63 [147K]
3 years ago
12

determine the price and quantity for which revenue is maximised given a firm demand function of a particular commodity to be (12

-q)^1/2
Mathematics
1 answer:
DerKrebs [107]3 years ago
7 0
Demand
D(q)=(12-q)^(1/2)
Revenue,
R(q)=q*D(q)=q*sqrt(12-q)
At maximum revenue, 
R'(q)=0
where
R'(q)=sqrt(12-q)-q/[2(sqrt(12-q))]=0
Solve for q=8.
Hence, quantity=8, price=sqrt(12-q)=sqrt(12-8)=sqrt(4)=2


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