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hi,
i saw a question about pricing , the question 1 , to be done in excel.
i cant seem to understand how to put the euations in excel and solve it. can u help me here
the question is
(a) Calculate the optimum (profit-maximising) selling price for Parapain and the resulting annual profit which TR Co will make from charging this price.I assume you’re referring to calculations of ‘a’,’b’ and presentation of demand function.
Well, looking at the examiner answer, it isn’t that difficult. You just have to put formulas in the cell for each variable, which will be checked by examiner.
For example, to calculate ‘b’ you can put the formula
=2/5000To calculate ‘a’,
first rearrange the function 0=a-0.0004*1000000 to a=0+0.0004*1000000
then put it as a formula
=0+0.0004*1000000Hope it helps.
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