Cost Concepts and Design Economics - General Economic Environment
4 important questions on Cost Concepts and Design Economics - General Economic Environment
Give the definition of consumer goods and services
Explain the relationship of demand and amount paid, include the formula in the explanation.
p = a -bD
p = price per unit
a = intercept on the price axis
-b = the slope, amount by which demand increases for each unit decrease in p
D = demand
- How to calculate the total revenue?
- How can the relationship between price and demand be included?
TR = aD-bD2
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Why do most businesses not obtain maximum profits by maximizing their revenues?
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