A General Linear Demand Function Has the Form That Follows $q = n p + b$

question 62

Multiple Choice

A general linear demand function has the form that follows. $q = n p + b$ (n and b constants, with $n \neq 0$ )

Obtain a formula for the price that maximizes revenue.

• A) \(p = \frac { b } { n }\)
• B) \(p = - \frac { b } { 2 n }\)
• C) \(p = b n\)
• D) \(p = - \frac { n } { 2 b }\)
• E) \(p = - \frac { 2 n } { b }\)

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Definitions:

S&OP

Sales and Operations Planning; a process where executive level management regularly meets to review projections for demand, supply, and the financial impact.

Functional Silos

Organizational structures that segment a company into departments or divisions based on functions or roles, often leading to reduced communication and integration between different areas.

Operational Planning

The process of converting strategic goals and objectives into detailed plans and actions to achieve short-term operational goals.

Weighted Moving Average

A statistical technique used to smooth data by giving different weights to different values, commonly used in forecasting.