Maximize sales revenue


Problem: A single firm operating as a monopolist wishes to determine the level of output to produce that will maximize sales revenue.

1. Provide first order conditions for revenue maximization

2. Show graphically and provide an economic explanation for the equilibrium position.

3. How does the profit maximizing equilibrium position differ from that for revenue maximization? Show graphically and mathematically.

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Macroeconomics: Maximize sales revenue
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