Re: SIS 2013

Posted by Akshay Jain on May 12, 2014; 5:54pm
URL: http://discussion-forum.276.s1.nabble.com/SIS-2013-tp7589464p7589466.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