Revenue Maximization

Q = -3370311 -1.33*P + 0.21*G + 3571.99*N -6858.96*FX – 2846.92*F + 551.01*R ----- Eq1

P = -2534068.42 - 0.75*Q + 0.16*G + 2685.71*N – 5157.11*FX – 2140.54*F + 414.29*R -----Eq2
TR = -2534068.42*Q - 0.75*Q^2 + 0.16*G*Q + 2685.71*N*Q – 5157.11*FX*Q – 2140.54*F*Q +
414.29*R*Q -----Eq3
MR= ∂(TR)/∂Q
= -2534068.42 – 1.5*Q + 0.16*G + 2685.71*N – 5157.11*FX – 2140.54*F + 414.29*R -----Eq4
For revenue GDP per Population Foreign Fuel price Average
maximizati capita exchange Railway
on, we rate ticket fare
calculated
price
elasticity
for every
quarter.
Price
elasticity
for March
2020 was
-1.09 which
was closest
to -1. So we
performed
revenue
maximizati
on analysis
for March
2020.
Substituting
values for
other G, N,
FX, F, and
R, we
derived the
revenue
maximizati
on point by
equating
Marginal
revenue to
zero.
Variables
As on 0.066 9.726 -1.008 -0.419 0.683
March 2020