Pricing

Have you watched the free lectures on pricing? Our lectures are a complete course for Paper F5 and cover everything you need to pass the exam well. Please do not simply set test questions and expect an answer. You must have an answer in whichever book you found the question, so please say what problem you have having with the answer!! The price demand equation is P = a - 1/40Q For maximum demand, P = 0, therefore a = 1/40 x 100,000 = 2,500 Since maximum profit is when Q = 42,000, the price must be P = 2,500 - 1/40x42000 = $1,450

you are right sir - I will review the lectures once more. Thanks

You are welcome :-)

Thanks for answer Sir, But why P=0 for the maximum demand , another q I have for what purpose sometime we say MR=0 and why Thanks,