Re: What will be the answers to these two JNU questions

Posted by Akshay Jain on Feb 09, 2014; 8:00am
URL: http://discussion-forum.276.s1.nabble.com/What-will-be-the-answers-to-these-two-JNU-questions-tp7584672p7584697.html

case 1..if Q=20 then P=5 acc to demand function
(TR)Total revenue=100 and (TC)Total cost is 20
(NP)Net Profit=100-20=80
case 2..if Q=5 then P=20
TR=100, TC=5
NP=95
case 3..if Q= 1/99 then P>20 (not possible coz of constraint on demand function if P>20 then Q=0)
case 4...if Q=10 then P=10
TR=100, TC= 10
NP=90

clearly profit is maximized at Q=5