Always round tire finds that their demand curve is p = 50 − .02 q. what price and quantity combination will maximize the firm's revenue? what are the total revenue and price elasticity at this point?

Price is 25

Quantity is 1,250

Total revenue= 31,250

Elasticity at that point = -0.1

Explanation:

Total revenue (TR) is given by TR=Price x Quantity . We can get the price from the demand equation. Then

where Q is the quantity and P is the price. To find the maximum revenue we take derivatives with respect to the quantity and equalize it to zero

solving for Q we have that Q=1,250 replacing in the demand curve we can get the price

Total revenue is

Elasticity at this point is

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