Posted: March 7th, 2017
BrightLight Ltd. Estimates the demand curve for its table lamps to be Q = 1,000 4P. That is, P=250 .25Q. Which of the following is false.
a. The maximum total revenue BrightLight can obtain is $62,500
b. The Marginal Revenue curve for BrightLight s table lamps is given by MR = 250 1/2Q
c. The elasticity of demand for BrightLight s table lamp is equal to 7.5 when their price is $125.
d. BrightLight maximizes its total revenues when selling 500 lamps.
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