he sale of compact disks of "lesser" performers is very sensitive to price. To sell ? CD's, a CD manufacturer must charge ? = 12 − q/8000 dollars per CD. a. Find an expression for the total revenue from the sale of ? CD'. b. Find the value of ? that leads to maximum revenue and the maximum revenue. c. Find an expression for ?, the elasticity of demand, and compute the elasticity for the value of ? you found in part b.
he sale of compact disks of "lesser" performers is very sensitive to price. To sell ? CD's, a CD manufacturer must charge ? = 12 − q/8000 dollars per CD. a. Find an expression for the total revenue from the sale of ? CD'. b. Find the value of ? that leads to maximum revenue and the maximum revenue. c. Find an expression for ?, the elasticity of demand, and compute the elasticity for the value of ? you found in part b.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The sale of compact disks of "lesser" performers is very sensitive to price. To sell ? CD's, a CD manufacturer must charge ? = 12 − q/8000 dollars per CD.
a. Find an expression for the total revenue from the sale of ? CD'.
b. Find the value of ? that leads to maximum revenue and the maximum revenue.
c. Find an expression for ?, the
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