Charge in order to maximize her total revenue

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Mia is the only seller of baskets to the people in this village. They purchase baskets according to the blue demand curve. Let's examine the sales revenue (which equals price times quantity) Mia would receive if she were to set the price somewhere in the range between 0 and 80 pesos per basket. You can assume she inherited a huge inventory of identical baskets. She sells all the baskets at the same price to all the villagers, knowing that if she gave any one person a big discount, he or she could turn around and resell at a higher price.

What price should Mia charge in order to maximize her total revenue?

Reference no: EM131088836

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