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Q = 2000 2 P
This is important as we can find Marginal revenue only from TR (in terms of Q)
Therefore MR = 1000 Q
c) what will be the total revenue at a price of $70? What will be the marginal revenue?
Ep = (Q /P)* (P/Q)
2. The ABC company manufactures AM/FM clock radios and sells on average 3000 units
monthly at $25 each to retail stores. Its closest competitor produces a similar type of radio
that sells for $28.
a) if the demand for ABCs product has an elasticity coefficient of -3, how much will it sell
per month if the price is lowered to $22.
b) the competitor decreases its prices to $24. It cross-elasticity between the two radios is
0.3, what will be the ABCs monthly sales be?
3) In the electronic market of Nehru Place, the demand function as analysed by Pankaj
Electronics for its LCD TV sets is P = 12000 6Q. find out,
TR = P *Q = 12000 Q 6 Q2
MR = TR /Q = 12000 12 Q = 1000 Q
b) at what price and quantity will marginal revenue be zero
4) In the electronic market of Nehru Place, the demand function as analysed by Pankaj
Electronics for its LCD TV sets is P = 12000 6Q. find out,
Ep = (Q /P)* (P/Q)
Ep = -1/6*(70/1988) = -0.0058
6(2000 P/6) = P
P = 6000