Question

A firm faces a demand function D(p), for which the revenue-maximizing price is $16. The demand function is altered to 2D(p). What is the new revenue-maximizing price?

a. $8

b. $16

c. $32

d. There is insufficient information to determine this.

e. none of the above.

please explain

Answer #1

**Answer:**

**A firm faces a demand
function D(p), for which the revenue-maximizing price is $16. The
demand function is altered to 2D(p). The revenue-maximizing price
is the cost at which a business will make the most revenue for a
given item**

**In order to find the price
that will maximize revenue, a business must either experiment with
a variety of pricing strategies to see which works the best, or
have a precise understanding of the demand curve of the product it
is selling.**

**The new revenue-maximizing
price = 2D(p) = 2 * revenue-maximizing price = 2 * 16 =
32**

**C] $32 is the correct
answer.**

A firm faces a demand function D(p), for which the revenue-
maximizing price is $10. The demand
function is altered to 2D(p). What is the new revenue maximizing
price? wih explanation

Sam’s demand function for x is D(p)=10-p/2. The price is
initially $8 per unit and increases to $16 per unit. Sam’s change
in consumer’s surplus is
a. 4
b. None of the above
c. -36
d. -32
e. 36

A firm faces the demand curve: P = 2,241 - 19Q. What is the
firm’s revenue maximizing price? Enter as a value (round to two
decimal places if necessary)

A resource firm faces the following demand function: P = 60 –
10Q. The marginal cost of extraction is $20. (MC = $20).
Using the Inverse Elasticity Pricing Rule, calculate the profit
maximizing output level and price.

Suppose that a firm faces the following demand function: Qd(P) =
7225 - 425P Assuming that MC=9 Calculate the profit maximizing
quantity (Q*)

A monopolist faces the inverse demand function p = 300 – Q.
Their cost function is c (Q) = 25 + 50Q. Calculate the profit
maximizing price output combination

11. A monopolist demand is
D = P = $10 - $.05Qm; AC = MC = $2. The
profit-maximizing price (P) and output (Q) are:
A P = $6, Q
= 40.
B. P = $8, Q =
60.
C P = $6, Q
= 80.
D P = $4, Q
= 100.
E. None of
the above.
12. A competitive
firm’s production function is
Q
= 5 + 20L - .5L2 + 40K – K2,
and its demand function is
PQ
= MRQ = d = $6....

This is a price setting firm problem.(show all work)
Demand Function: P=32-Q
Total Cost Function: C=Q²+8Q+4
Profit maximizing price is.....?
Profit maximizing quantity is......?
Profit is......?
Lerner Index Value is......?
Price Elasticity of Demand is......?
To maximize sales, this firm would change a price...... and sell
a quantity of..........?

Consider a monopolist that faces an inverse demand for its
product given by
p=600-4Q
The firm has a cost function C(Q)=9Q2+400
What is the profit-maximizing price for this monopolist? Provide
your answer to the nearest cent (0.01)

Consider a monopolist that faces an inverse demand for its
product given by
p=600-9Q
The firm has a cost function C(Q)=3Q2+500
What is the profit-maximizing price for this monopolist? Provide
your answer to the nearest cent (0.01)

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