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Dear Mr. John,
Could you please explain to me in 1st Question how they got Q=36000, in 2nd Question the answer in little more details as I did not get it.
Thanks in advance,
Eslam Ahmed.Q28:
Have you watched the free lecture here on pricing?
Assuming you have, then you will have got the price/demand equation to be P = 305 – 0.00025Q
Therefore the marginal revenue – 305 – 0.0050Q
For maximum profit, MR = MC, so 305 – 0.0050Q = 125
So Q = 36,000.(If you have not watched the lecture, then you must.)
Q20.9:
You will have to say which product you have the problem with.
The BPP answer is wrong with respect to X. The correct value for X is (300 x 3) + (200 x 7) = 2300.
(Again, I assume you have watched the free lecture on relevant costing because I cannot type out the whole lecture here 🙂 )
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