A Firm Faces a Demand Function D(p), for Which the Revenue-Maximizing

question 80

Multiple Choice

A firm faces a demand function D(p) , for which the revenue-maximizing price is $10.The demand function is altered to 2D(p) .What is the new revenue-maximizing price?

• A)$5
• B)$20
• C)$10
• D)There is insufficient information to determine this.
• E)none of the above.

---

Definitions:

Sales on Account

Transactions where goods are sold and payment is deferred to a future date; this is typically tracked through accounts receivable.

Beginning Inventory

The value of a company's inventory at the start of an accounting period, before any purchases or sales have occurred.

Projected Sales

An estimate of the amount of revenue that a company expects to earn in a future period from the sale of goods or services.

Finished Goods

These are products that have completed the manufacturing process but have not yet been sold or distributed to the end customer.