Find optimal price to charge if goal is to maximize revenue

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Wal-Mart charges $20 for the new Ghostbusters DVD and sells 400 copies per month. Then they reduce their price to $18, and sell 500 per month. Assuming a linear demand curve, find the optimal price to charge if the goal is to maximize revenue. (Note: the price does not necessarily have to be $20 or $18.) Show all work.

Reference no: EM131196996

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Find optimal price to charge if goal is to maximize revenue : Wal-Mart charges $20 for the new Ghostbusters DVD and sells 400 copies per month. Then they reduce their price to $18, and sell 500 per month. Assuming a linear demand curve, find the optimal price to charge if the goal is to maximize revenue.

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