Revenue and cost functions and determine equilibrium price

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Reference no: EM132702853

The Trusted Genuine Masters company produces forged paintings for sale at well-known auction houses. The company estimates that its demand equation is

q =-25p+5,000

paintings sold per month when priced at p Euros each. It has monthly fixed costs of €400 and variable costs of €10 per painting.

Find the company's monthly revenue, cost, and profit as functions of p, the price per painting.

Draw the graphs of revenue and cost functions and determine the equilibrium price. How many paintings would be sold at the equilibrium price?

Reference no: EM132702853

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