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q- at selling price $ 200,demand is 100,000 units per annum. demand will change by 10,000 units for every $ 30 change in selling price. fixed cost is $ 60,000 and variable cost is $ 8 per unit.
At what selling price per unit the profit will be maximised?You should calculate the values of a and b in the price/demand equation.
Use the same values in the MR equation given on the formula sheet, and then make this equal to the marginal cost (of $8).
This will give you the value of Q for maximum profit. Then you can use the price demand equation to get the selling price.
thank you so much..i did the same method..but i dnt get the answer before..but i got it nw
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