Im having trouble with this equation and not sure if my calculations are correct, i think i have worked out the profit maximisation correct but am unsure how to calculate the revenue maximisation(adsbygoogle = window.adsbygoogle || []).push({});

1. Desktop Publishing Software Inc. develops and markets software packages for business computers. Although sales have grown rapidly during recent years, the company’s management fears that a recent onslaught of new competitors may severely retard future growth opportunities. Therefore, it is believed that the time has come to “get big or get out”. The marketing and accounting departments have provided management with the following monthly revenue and cost information:

TR = 1000Q – Q2

TC = 50,000 + 100Q

a) Calculate monthly quantity, price and profit at the revenue maximising level.

b) Calculate monthly quantity, price and profit at the profit maximising level.

So i managed to simplify the equation down toso this is profit

= 1100 - 2Q

then so to get profit maximisation i need to get this = 0

so 1100 - 2Q = 0

Q = 550 quantity

then i need to put this back in the original equation so:

(1000*550 - 550squared ) - (50000 - 100*550)

= 252,500

do i then to get price divide 252,500/550 and get 459 as price?

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# Homework Help: Need assistance with calculating profit maximisation and revenue maximisation

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