During the 1950s the wholesale price for chicken for a country fell from 25c per pound to 14c per pound, while per capita chicken consumption rose from 21.5 pounds per year to 27 pounds per year. Assume that the demand for chicken depended linearly on the price.(a) Construct a linear demand function q(p), where p is in cents (e.g., use 14c, not $0.14).Then, find the revenue function. R(p).R(p) =(b) What wholesale price for chicken would have maximized revenues for poultry farmers?¢ per poundSecond derivative test:Your answer above is a critical point for the revenue function. To show it is a maximum, calculate the second derivative of the revenue function.R"(p)=

Demand function seeks to explain how the quantity demanded by buyers is related to the price of a…

During the 1950s the wholesale price for chicken for a country fell from 25e per pound to 14e per pound, while per capita chicken consumption rose from 21.5 pounds per year to 27 pounds per year. Assume that the demand for chicken depended linearly on the pric (a) Construct a linear demand function q(p), where p is in cents (e.g., use 14e, not $0.14). Then, find the revenue function. R(p). R(P) = (b) What wholesale price for chicken would have maximized revenues for poultry farmers? e per pound Second derivative test: Your answer above is a critical point for the revenue function. To show it is a maximum, calculate the second derivative of the revenue function. R"(p)=

During the 1950s the wholesale price for chicken for a country fell from 25e per pound to 14e per pound, while per capita chicken consumption rose from 21.5 pounds per year to 27 pounds per year. Assume that the demand for chicken depended linearly on the pric (a) Construct a linear demand function q(p), where p is in cents (e.g., use 14e, not $0.14). Then, find the revenue function. R(p). R(P) = (b) What wholesale price for chicken would have maximized revenues for poultry farmers? e per pound Second derivative test: Your answer above is a critical point for the revenue function. To show it is a maximum, calculate the second derivative of the revenue function. R"(p)=

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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