Re: JNU SIS 2013

Posted by Amit Goyal on May 09, 2016; 10:05am
URL: http://discussion-forum.276.s1.nabble.com/JNU-SIS-2013-tp7600543p7600546.html

Its simple, profits (as a function of q) for the above demand function can be written as:

profits(q) ={ 100 - q if q >= 5,
                 { 0 - q if q < 5

Clearly, the profit maximizing choice is q = 5 and therefore, p = 20.